Manba Finance IPO Listing Details

Manba Finance Limited, a non-banking finance company specializing in vehicle and small business loans, made a strong debut on the Indian stock market on Monday, 30th September 2024, with its shares listing at a significant premium to the issue price on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Listing Details

• NSE Listing Price: Manba Finance shares were listed at ₹145 per share on the NSE, marking a strong start to its journey as a publicly traded company.
• BSE Listing Price: On the BSE, the stock opened even higher at ₹150 per share.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. Manba Finance had set its IPO price band from ₹114 to ₹120 per share, with the final issue price being fixed at the upper end of ₹120.
• Percentage Change: The listing price of ₹145 on the NSE translates to a premium of 20.83% over the issue price of ₹120. On the BSE, the opening price of ₹150 represents an even higher premium of 25%

First-Day Trading Performance

• Opening vs. Latest Price: Following its strong opening, Manba Finance's share price continued to rise. By 10:29 AM, the stock was trading at ₹152.25 on the NSE, up 5% from its opening price and 26.88% above the issue price, hitting the upper circuit for the day.
• Market Capitalisation: As of 10:29 AM, the company's market capitalisation stood at ₹764.90 crore.
• Trading Volume: The traded volume was 38.15 lakh shares with a traded value of ₹56.12 crore, indicating significant investor interest on the first day of listing.

Market Sentiment and Analysis

• Market Reaction: The market reacted overwhelmingly positively to Manba Finance's listing. The strong listing premium and hitting the upper circuit indicate robust demand and investor confidence in the company's prospects.
• Subscription Rate: The IPO was massively oversubscribed by 224.05 times, with NIIs leading at 511.62 times, followed by QIBs at 148.55 times, and retail investors at 143.95 times.
• Grey Market Premium: Prior to listing, shares were trading at a premium of 28% in the grey market, which was surpassed at listing

Growth Drivers and Challenges

Expected drivers of future performance:

• Established relationships with over 1,100 dealers across 6 states
• Low NPA levels (3.95% gross NPA and 3.16% net NPA in FY24)
• Expansion into underpenetrated geographies
• Technology-driven operating model with quick loan processing

Potential challenges:

• Competitive NBFC sector
• Potential regulatory changes affecting vehicle financing
• Economic factors impacting vehicle sales and loan demand

Utilisation of IPO Proceeds

Manba Finance plans to use the funds to:

• Manba Finance plans to use the funds to augment its capital base to meet future capital requirements.

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased by 44% in FY24 compared to the previous year
• Profit After Tax (PAT) jumped by 90% in FY24 compared to FY23

As Manba Finance begins its journey as a listed entity, market participants will closely monitor its ability to leverage its strong dealer network and expand into new geographies to drive future growth and shareholder value. The stellar listing and overwhelming subscription rates suggest extremely positive market sentiment towards the company's prospects in the specialised vehicle and small business financing sector.