The Manba Finance IPO has garnered significant attention in the financial market. Scheduled to open for subscription from September 23, 2024, to September 25, 2024, this IPO aims to raise ₹150.84 crores through a fresh issue of 1.26 crore shares. With a price band set between ₹114 to ₹120 per share, investors are keenly watching the developments. This article delves into the details of the Manba Finance IPO, providing a thorough analysis for potential investors.
IPO Details and Subscription Status
Manba Finance Limited is offering a total of 12,570,000 equity shares, each with a face value of ₹10. The IPO is entirely a fresh issue, with no Offer for Sale (OFS). The minimum order quantity is set at 125 shares, making the minimum investment for retail investors ₹15,000. The IPO will be listed on both BSE and NSE, with the tentative listing date set for September 30, 2024. The allotment is expected to be finalized by September 26, 2024, with shares credited to demat accounts by September 27, 2024.
The subscription status of the Manba Finance IPO is a crucial indicator of investor interest. As of now, the IPO has seen significant interest from various investor categories. Qualified Institutional Buyers (QIBs) are allocated not more than 50% of the offer, Non-Institutional Investors (NIIs) are allocated at least 15%, and Retail Individual Investors (RIIs) are allocated at least 35%. The subscription figures will be closely monitored until the closing date.
Financial Performance and Valuation
Manba Finance Limited has shown a steady financial performance over the years. For the fiscal year 2024, the company reported an Earnings Per Share (EPS) of ₹8.34, with a Price-to-Earnings (PE) ratio of 14.38x, slightly above the industry average of 13.45x. The company’s net sales have grown consistently, reaching ₹133.32 crores in the fiscal year 2023. The operating profit for the same period was ₹83.85 crores, indicating a robust financial health.
The valuation of the IPO is based on the price band and the company’s financials. With an upper price band of ₹120, the approximate market capitalization of Manba Finance post-IPO is expected to be ₹602.04 crores. This valuation reflects the company’s growth potential and market position. Investors should consider these financial metrics while making their investment decisions.
Key Considerations for Investors
Investing in the Manba Finance IPO comes with its own set of considerations. Firstly, the company’s strong financial performance and growth trajectory make it an attractive investment. The absence of an Offer for Sale (OFS) indicates that the promoters are confident in the company’s future prospects. Additionally, the IPO proceeds will be used for expanding the company’s lending portfolio and enhancing its technological infrastructure, which could drive future growth.
However, investors should also be aware of the risks associated with investing in an IPO. Market volatility, regulatory changes, and economic conditions can impact the company’s performance. It is essential to conduct thorough research and consider one’s risk tolerance before investing. Consulting with financial advisors can provide additional insights and help in making informed investment decisions.
