Manba Finance Limited IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

Manba Finance Limited, founded in 1996, is a well-established non-banking financial company (NBFC) in India, specializing in two-wheeler, used car, and personal loans for individuals and small businesses. It is known for offering fast loan approvals and disbursements, meeting customers' needs, and seeking quick financing solutions.

The company operates in 66 locations through 29 branches across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh and its headquarters is in Mumbai. It has also built strong partnerships with over 1,100 dealers, including more than 190 electric vehicle (EV) dealers with a total employee count of 1,344. As of March 31, 2024, the company has an AUM of ₹900 crores. Nearly 98% of its loan book is made up of new vehicle loans, with an average loan size of ₹80,000 for two-wheelers and ₹1,40,000 for three-wheelers. The two-wheeler segment is the company's primary revenue generator.

IPO Details:

IPO Date

23rd Sept-2024 to 25th Sept-2024

Face Value

₹ 10/- per share

Price Band

₹ 114 to ₹ 120 per share

Lot Size

125 shares and in multiples thereof

Issue Size

₹ 150.84 crores

Fresh Issue

₹ 150.84 crores

OFS

-

Expected Post Issue Market Cap (At upper price band)

₹ 602.87 crores

Objects of Issue:

  • Augmentation of capital base to meet our future capital requirements.

Key Strengths:

  • Focus on Niche Segments: Manba Finance has successfully established itself in the two-wheeler and used car loan markets, particularly in less-served regions. Its tailored financial products and deep understanding of local markets provide an edge over larger NBFCs and banks. The ability to offer vehicle loans quickly adds to its operational strength.
  • Technology-Driven Approach: The company has adopted digital tools and systems over the years, enhancing efficiency in its lending processes. This has allowed for faster loan approvals and better customer experiences.
  • Robust Distribution Network: The company has a solid presence across multiple states, supported by strong relationships with key automobile dealers. This well-developed network helps the company cater to a wider audience.

Risks:

  • Geographical Concentration: A significant portion (87.8%) of Manba Finance’s loan book is concentrated in just two states. Any political or economic issues in these regions could have a major impact on the company’s performance.
  • Regulatory Pressures: The NBFC sector has faced increasing scrutiny, with the government introducing tighter regulations. These regulatory changes could potentially affect the company's operations.
  • Intense Competition: The vehicle financing market is highly competitive, with banks and other large NBFCs offering similar products. This increased competition may lead to challenge for the company attracting new customers and it could also pressure the profit margins.

Financial Snapshot:

Metrics

Financial Year ended March 31, 2024

Financial Year ended March 31, 2023

Financial Year ended March 31, 2022

Net Worth

20,060.75

16,843.13

15,174.38

Revenue from operations

19,158.61

13,331.64

10,659.06

Gross Loan Book

79,877.22

63,368.90

49,582.62

Interest Income

16,835.76

12,496.17

9,397.99

Profit after tax

3,141.97

1,658.01

974.02

Gross NPA

3.95%

3.74%

4.94%

Net Retail

3.16%

3.14%

4.30%

Capital to risk-weighted assets ratio (CRAR)

25.17%

27.02%

31.44%

Spread

9.46%

10.93%

6.71%

Net Interest Margin

11.16%

12.31%

9.28%

Average cost of Borrowing

11.98%

11.19%

11.61%

Return on Equity

15.66%

9.84%

6.42%

Return on Total Average Assets

3.57%

2.46%

1.74%

Number of on-roll employees

1,133

827

663

Number of Branches

65

51

33

                                                                                  (Rs in Lakhs, unless otherwise specified)

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