📈 IPO Analysis of Manba Finance: Is It Worth Your Investment?
Manba Finance Limited, a Non-Banking Financial Company (NBFC) based in Mumbai, Maharashtra, has been actively expanding its presence across 66 locations connected to 29 branches in six states. Specializing in loans for new vehicles, personal loans, and used cars.
Company Overview
Manba Finance operates in the finance and loan segment, focusing on retail lending. Their business revolves around providing various types of loans to individuals and small businesses. The company holds a market capitalisation of ₹602.87 crore , with a debt of ₹725.27 crore.
Financial Performance
Manba Finance has shown significant growth over the past few years:
Revenue:
- FY 2022: ₹107 crore
- FY 2023: ₹133 crore (up by 24.29% 📈)
- FY 2024: ₹192 crore (up by 44.36% 📈)
Total Profit:
- FY 2022: ₹9.74 crore
- FY 2023: ₹16.78 crore
- FY 2024: ₹31.42 crore
The company’s AUM (Assets Under Management) reached ₹936.85 crore in FY 2024, indicating solid business growth despite its debt levels. While debt stands at ₹725 crore, this is typical for finance companies that operate by circulating borrowed funds.
Promoters and Leadership
- Manish Kumar Shah: Promoter and Managing Director
- Nikita Manish Shah: Director and Head of Business Development
- Monil Manish Shah: Chief Business Officer
The leadership team brings a solid track record of managing and growing the business, with their combined expertise driving the company forward.
IPO Details
Manba Finance is planning to raise ₹150.84 crore through an Initial Public Offering (IPO). Here’s a quick summary of the IPO details:
- Type: Fresh issue of shares (1,25,70,000 equity shares)
- Price Band: ₹114–₹120 per share
- Minimum Lot Size: 125 shares
Apply Quotas
Investors can apply for the IPO under two categories:
- Regular Investors: Standard retail investors
- High Net Worth Individuals (HNIs): Investors with a higher investment capacity.
Use of IPO Proceeds
The funds raised from the IPO will be used for the following purposes:
- Capital Infusion into Subsidiary (Manba Leasing): ₹60 crore
- Debt Repayment: ₹100 crore
- General Corporate Purposes: ₹40 crore
These allocations aim to strengthen the company’s financial health, reduce debt, and support future growth.
Conclusion
Manba Finance offers an interesting investment opportunity. While the company has a high debt load, this is typical for financial institutions that rely on circulating funds. The company has demonstrated solid revenue and profit growth, and the IPO proceeds will help reduce debt and fuel further expansion. With strong leadership and growing AUM, Manba Finance could be a promising investment.
Disclaimer: This analysis is for informational purposes only. Please conduct your own research or consult with a financial advisor before making any investment decisions.
