Manba Finance Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹120
Per ShareLot Size
125 Shares
Minimum Investment
₹15,000
Issue Size
₹150.84 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Manba Finance Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
99.99%
Issue Type
Book Building
ISIN
INE939X01013
About the Company
Manba Finance Limited is a Non-Banking Financial Company - Base Layer (NBFC-BL) regulated by the Reserve Bank of India (RBI) providing financial solutions for New two-wheeler (2Ws), three wheeler (3Ws), electric two wheeler (EV2Ws), electric three wheeler (EV3Ws), Used Cars, Small Business Loans and Personal Loans with an AUM size of more than Rs. 90,000 lakhs as on March 31, 2024. About 97.90% of its loan portfolio comprises of New Vehicle Loans with an average ticket size (ATS) of around Rs. 80,000 for two-wheeler loans and an average ticket size (ATS) of around Rs. 1,40,000 for three-wheeler loans. The Company provides financial solutions to its target customers who are looking for a quick turnaround time (TAT) for loan sanction and disbursement. The Company is based out of Mumbai, Maharashtra and operates out of 66 Locations connected to 29 branches across six (6) states in western, central and north India. The COmpany has established relationships with more than 1,100 Dealers, including more than 190 EV Dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh and Uttar Pradesh. As on the date of the red herring prospectus, the company does not have any subsidiary, associate and holding company.
Industry Overview
CRISIL MI&A expects domestic two-wheeler sales to record a compound annual growth rate (CAGR) of 8-10% from fiscal 2024 to fiscal 2027 post a robust recovery in fiscal 2023 and fiscal 2024. Scooters are expected to witness higher penetration in the rural market (scooters have an urban market share of ~65-75%) which will drive growth. The consumer preference shifting towards higher `cc' scooters (125cc) is also likely to aid demand. Further, CRISIL MI&A expects two-wheeler disbursements to grow at 14-16% CAGR from fiscal 2024 to 2027, driven by recovery in scooter sales with improvement in urban sentiments along with increase in two-wheeler EV penetration and improving rural infrastructure.
Company History
Manba Finance Limited was originally incorporated as `Manba Finance Private Limited', a private limited company under the Companies Act, 1956 at Mumbai, Maharashtra, pursuant to a certificate of incorporation dated May 31, 1996, issued by the Registrar of Companies, Maharashtra at Mumbai ("RoC"). Thereafter, the Company was converted into a public limited company pursuant to a special resolution passed by its Shareholders as on January 31, 2005 and consequently, the name of the Company was changed to `Manba Finance Limited'. A fresh certificate of change of name, consequent upon conversion to a public limited company was issued by RoC on January 31, 2005. The RBI granted a certificate of registration dated April 7, 1998 to the Company, under its erstwhile name `Manba Finance Private Limited' for registration as a NBFC under Section 45-IA of the Reserve Bank of India Act, 1934 ("RBI Act"). Subsequently, the RBI granted a revised certificate of registration dated January 27, 2022, to carry on business of non-banking financial institutions without accepting public deposits.
Products & Services
- The Company is a Non-Banking Financial Company providing financial solutions for New two-wheeler (2Ws), three wheeler (3Ws), electric two wheeler (EV2Ws), electric three wheeler (EV3Ws), Used Cars, Small Business Loans and Personal Loans.
Growth Strategy
- Increasing penetration in existing markets and diversifying into new markets.
- Continue focus on vehicle finance and the growing 2Ws/3Ws/EV2Ws/EV3Ws market.
- Diversifying its portfolio into Used Car Loans, Small Business Loans and Personal Loans.
- Leveraging its existing Branch and location setup by adding new products.
- Continue to invest in technology and digitization initiatives to enhance its operating model and improve customer experience.
- Enhance its brand recall to attract new customers.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of up to 1,25,70,000 equity shares of face value of Rs. 10 each ("Equity Shares") of Manba Finance Limited ("The Company" or "Issuer") for cash at a price of Rs. 120 per equity share (including a premium of Rs. 110 per equity share) ("Issue Price") aggregating up to Rs. 150.84 crores ("Issue"). The issue comprises a fresh issue of up to 1,25,70,000 equity shares aggregating up to Rs. 150.84 crores ("Issue"). The issue shall constitute 25.02 % of the post-issue paid-up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Established relationships with more than 1100 Dealers.
- Ability to expand to new underpenetrated geographies (currently present in 66 locations spread across six states in western, central and north India).
- Access to diversified and cost-effective long-term borrowing.
- Technology drive and scalable operating model with quick Turn Around Time (TAT) for loan processing (5.30 days as of March 31, 2024).
- Wide collections infrastructure and processes leading to maintenance of the Company's asset quality.
- Its business and future prospects could get adversely affected if the company is not able to maintain relationships with its Dealers from whom the company derive significant portion of its New Vehicle Loans business.
- New Vehicle Loans constitute 97.90% of its AUM. Lack of diversity in its loan products may affect the company's growth, prospects and financial condition.
- Any downgrade in its credit ratings could increase the company borrowing costs, affect its ability to obtain financing, and adversely affect the company's business, results of operations and financial condition.
- Its may faces asset-liability mismatches, which could affect the company liquidity and consequently may adversely affect its operations and profitability.
- Its operations could be adversely affected by strikes or increased remuneration demands by its employees or any other kind of disputes with the company's employees.