Manba Finance's IPO has garnered an outstanding response from investors. If you've received an allotment, signs from the grey market indicate a strong listing ahead. Let’s explore how much higher the listing could be compared to the issue price.
Manba Finance, a company providing loans for 2-wheeler and 3-wheeler vehicles, is set to list on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on Monday, September 30. The IPO was subscribed a record 224.05 times, with bids received for 197.18 crore equity shares against approximately 88 lakh equity shares offered. In the Qualified Institutional Buyers (QIB) category, it was subscribed 148.55 times, while it saw a remarkable 511.62 times subscription in the Non-Institutional Investors (NII) category and 143.95 times in the retail category.
Grey Market Status
The grey market indicates strong listing prospects for this IPO. Compared to the issue price of ₹120 per share, it is expected to list at a premium of approximately Rs 38, or 31.67%. However, there has been a decline in grey market premiums since the allotment date. On September 26, the day of allotment, Manba Finance's premium was ₹58 per share. It's important to note that grey market conditions can fluctuate rapidly, and most investors look to the grey market premium for signals regarding the listing.
Business Model
Manba Finance is associated with the NBFC sector, offering financial services such as auto loans, loans for used cars, small business loans, and personal loans. Currently, the company operates in 66 locations across 6 states in India, including Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.
AUM
The company's Assets Under Management (AUM) reached Rs 936 crore in the fiscal year 2024, up from Rs 495 crore in fiscal year 2022, reflecting a Compound Annual Growth Rate (CAGR) of 37.5%. In fiscal year 2024, the company's profit surged by 89.5% to Rs 31.41 crore, compared to Rs 16.58 crore the previous year, while revenue increased by 44% to Rs 191.58 crore.