Manba Finance IPO subscriptions for the non-banking finance company's (NBFC) initial public offering (IPO) were accepted on Monday, September 23. The price range for the public issue, which ends on September 25, is Rs 114 to Rs 120 per share.
1.26 crore equity shares are being issued in a new offering valued at Rs 150.84 crore. The offer for sale (OFS) component is absent.
The funds raised will be used for general corporate purposes and to increase the company's capital base in order to meet future capital demands.
Subscription across category
The first day of bidding, 5.40 times shares in Manba Finance IPO were booked on Monday, September 23 Out of the 87.99 lakh shares on offer, bids for over 4.75 crore shares were received for the NSE SME issue.
Out of the 43.99 lakh shares reserved for the category, bids for 2.20 crore shares were received, accounting for 5.02 times of the IPO's retail portion.
Non-institutional investors (NIIs) submitted applications for 1.35 crore shares out of the 18.85 lakh shares set aside for this group. The NIIs booked their quota 7.19 times.
Out of the 25.14 lakh shares reserved for the segment, the Qualified Institutional Buyers (QIBs) showed little interest in the IPO; the category had only applied for 8,375 shares.
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Issue size
Manba Finance's IPO, the NBFC plans to raise Rs 150.84 crore, consisted solely of the fresh sale of 1,25,70,000 equity shares. In order to meet the company's future capital requirements, the net proceeds from the issue will be applied to expanding the capital base.
Price band and lot size
For its initial public offering, the company has set a price range of Rs 114 to Rs 120 per share. A minimum of 125 equity shares are available for purchase in a single lot, as well as in multiples thereof.
Reservation across categories
Qualified institutional bidders (QIBs) will receive 50 per cent of the shares reserved by Manba Finance, while non-institutional investors (NIIs) will receive 15 per cent of the equity shares reserved. A portion of the IPO reserved for retail investors is 35 per cent.
Anchor investment
Manba Finance distributed 37.71 lakh equity shares at a cost of Rs 120 each to eight institutional investors, raising a total of Rs 45.25 crore from them.
Vikas India EIF I Fund, Belgrave Investment Fund, Meru Investment Fund, NAV Capital VCC, Rajasthan Global Securities, Chartered Finance & Leasing, Finavenue Capital Trust, and Antara India Evergreen Fund were among those in its anchor book.
Company financials
For the fiscal year 2024, Manba Finance recorded revenue of Rs 191.63 crore and a net profit of Rs 31.42 crore. For the year that ended in March 2023, the company reported revenue of Rs 133.32 crore and a net profit of Rs 16.58 crore. The Manba Finance IPO has a total market capitalisation of Rs 602.87 crore.