Shares of Manba Finance are set to make their Dalal Street debut on Monday and the company is likely to deliver a decent listing pop to the investors. However, investors should trim the expectations of a stellar listing pop as the grey market premium for the listing bound player has taken a major hit.
The rising volatility in the broader market has dented the listing prospects of the company. Ahead of its debut, shares of Manba Finance were commanding a grey market premium (GMP) of 38-40 per share suggesting a listing pop of up to 35 per cent for the investors. However, it was around Rs 64-65 on the first day of the bidding.
The IPO of Manba Finance ran for bidding between September 23 and September 25. The shadow lender had offered its shares in the fixed price band of Rs 114-120 per share with a lot size of 125 shares. The company raised a total of Rs 150.84 crore from its IPO, which was entirely a fresh share sale of up to 1,25,70,000 equity shares.
The issue was overall subscribed a stellar 224.10 times. The allocation for non-institutional investors was booked a whopping 511.65 times. The quota for qualified institutional bidders (QIBs) was subscribed 148.55 times. The portions reserved for retail investors saw bidding for 144.03 times during the five-day bidding process.
Established in 1998, Manba Finance is a non-banking finance company (NBFC) offering financial solutions for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans and personal loans.
Brokerage firms mostly had a positive view on the issue and suggested subscribing to it. Hem Securities was the sole book running lead manager of the Manba Finance IPO, while Link Intime India served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.