Manba Finance Eyes Affordable Housing Loans Foray After Strong Market Debut
Manba Finance has an AUM of over Rs 900 crore, and is prepared to increase it incrementally over the next few years, MD Manish Shah said.
After a successful initial public offering, Manba Finance Ltd. plans to foray into the affordable housing loans segment to boost its assets under management, Managing Director Manish Shah said.
The non-banking finance company made its stock market debut on Monday, listing with a premium of over 25% on the BSE. The stock listed at Rs 150 apiece on the BSE, against the issue price of Rs 120.
Manba Finance has an AUM of over Rs 900 crore, and is prepared to increase it incrementally over the next few years, Shah told NDTV Profit.
“After this milestone (initial public offering), our capital adequacy level will improve. We will be able to leverage better,” he said.
The top executive outlined the plan to increase its business numbers in the next three to five years.
“So far there are three states where we just started operations in the last one year. First of all, we will focus and penetrate those states,” he said.
Manba Finance has recently entered into new markets including Chhattisgarh, Madhya Pradesh and Uttar Pradesh.
“Then we are targeting to spread our products like used car loans, small business loans, and three-wheeler loans, which we have just started in the last one and half years,” Shah said.
Following this, the company is also planning to increase its loan portfolio.
“We are also targeting in future, with board approval and RBI approval, affordable housing finance because these are the customers who can really go for that,” Shah revealed.
The ticket size for these loans will be between Rs 8 lakh and Rs 10 lakh, he said.
“All our business plans are already submitted and we are completely focused. The team is powerful and we are technologically very sound. With all these things it seems that reaching higher AUM will not be an issue for Manba Finance,” the top executive said.
The company currently offers loans in the two-wheeler, three-wheeler, use car, personal and small business segments. It is present in 66 locations across six states.
Manba Finance share price closed in the upper circuit of 5% at Rs 152.25 apiece, up 26.9% from its issue price on the National Stock Exchange, compared to a 1.41% decline in the Nifty 50.
