IPO-Bound Manba Finance To Focus On Loans For Non-Metro, Rural Clientele

Manba Finance Ltd., a non-banking financial company, has added new loan products to its portfolio for people with limited or no access to credit facilities.

The company, which is set to launch its initial public offering this week, is diversifying its portfolio to reach out to potential customers with less access to credit.

“The whole idea is to reach out to customers who have less access to credit. So we are placed in rural areas, tier 2 and tier 3 cities. The loans will be given to people with less access to credit. We want to explore this possibility and that is why we are diversifying our portfolio and adding more products,” Manish Shah, managing director of Manba Finance told NDTV Profit.

While the financier's main business involves two-wheeler financing with which it had begun operations, it has expanded to other segments and plans to introduce new products.

“In 2008, we started our own financing company Manba and currently, we are present in six states and we are into all kinds of two-wheeler financing. We want to become a diversified financier. The journey started with two-wheelers but now we want to add some new products,” the top executive said.

Manba Finance has over time extended its credit portfolio. It now gives loans for three-wheelers, electric three-wheelers, used cars and small businesses. The NBFC also offers top ups and personal loans for existing customers.

The IPO-bound company is present in Maharashtra, Gujarat, Rajasthan, and has recently expanded its presence in Chhattisgarh, Madhya Pradesh and Uttar Pradesh.

The proceeds from the fresh issuance will be used to augment the capital base to meet the company’s future capital requirements.

Talking about the company’s revenues, Shah said that 70% business comes from Maharashtra.

“In Maharashtra, tier 1 cities contribute to 55% of our business and the rest 45% comes from tier 2 cities,” he said.

He added that 20% of the revenue comes from Gujarat and the remaining 10% from the rest of the states. 

Manba Finance's IPO is scheduled to open for subscription on Sept. 23 and close on Sept. 25. The IPO is scheduled to list on the NSE and BSE on Sept. 30. The mainboard IPO is an entirely fresh issue of 1.26 crore shares worth Rs 150.84 crore.

The NBFC's IPO price band has been fixed between Rs 114 and Rs 120 for each equity share with a face value of Rs 10 each.