Manba Finance IPO Subscribed 23.79 Times On Day One

Manba Finance Ltd.'s initial public offering has been subscribed 23.79 times on Monday. Net institutional investors drove demand, with retail investors coming in a close second. The company is aiming to raise up to Rs 150.84 crore from the IPO.

The mainboard IPO is an entirely fresh issue of 1.26 crore shares. 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. There is no offer-for-sale component.

The minimum application lot size is 125 shares. Ahead of the IPO, Manba Finance allotted 37.7 lakh shares at Rs 120 per share to eight anchor investors, raising Rs 45.25 crore. Hem Securities Ltd. is the book-running lead manager for the IPO.

The IPO will conclude on Wednesday, and the company will likely list on the BSE and the National Stock Exchange on Sept. 30. Proceeds from the fresh issue will be used to augment the capital base, to meet the company’s future capital requirements.

• Issue opens: Sept. 23.

• Issue closes: Sept. 25.

• Issue price: Rs 114 to Rs 120 per share.

• Fresh issue: Rs 150.84 crore.

• Bid lot: 125 shares.

• Listing: BSE and NSE. 

Manba Finance 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 and Rajasthan, and has recently expanded its presence in Chhattisgarh, Madhya Pradesh and Uttar Pradesh.

Part of the proceeds from the fresh issue will be used to augment the capital base, to meet the company’s future capital requirements.

The IPO was subscribed 23.79 times as of 5:00 p.m. on Monday.

• Qualified institutional buyers: 2.36 times.

• Non-institutional investors: 43.18 times.

• Retail investors: 27.71 times.

The grey market premium of Manba Finance was Rs 64 as of 02:59 p.m., implying a 53.33% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 184 per share.

GMP is not an official price quote for the stock and is based on speculation. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.