Manba Finance Initiates IPO Journey, Files Draft Papers with SEBI

Maharashtra-based non-banking finance company (NBFC) Manba Finance has taken a significant step forward in its growth trajectory by filing papers with the capital markets regulator to initiate an initial public offering (IPO).

The IPO, exclusively comprising a fresh issue of 1,25,70,000 shares, marks a pivotal moment for Manba Finance as it seeks to raise funds for augmenting its capital base. Notably, the offering will not include any offer-for-sale component.

Currently, Manba Finance is wholly owned by its promoter and promoter group. The largest shareholders include Manish Kiritkumar Shah, his wife Nikita Manish Shah, and Manba Investments & Securities, holding stakes of 17.41 percent, 13.29 percent, and 36.92 percent, respectively.

Specializing in various financial products such as new vehicle financing, used car loans, small business loans, and personal loans, Manba Finance aims to utilize the proceeds from the IPO to strengthen its capital base. These funds will be instrumental in meeting the NBFC’s future capital requirements for onward lending activities.

The IPO launch represents a significant milestone for Manba Finance as it positions itself for continued growth and expansion in the dynamic financial services sector. Investors and market participants are keenly awaiting further details and developments regarding this forthcoming offering.

As Manba Finance gears up for its forthcoming initial public offering (IPO), the company’s financial performance in recent years underscores its resilience and growth trajectory in the non-banking finance sector.

The NBFC has consistently maintained a robust capital to risk-weighted assets ratio (CRAR), standing at 27.02 percent for the financial year 2022-23 and 26.62 percent for the six-month period ending September FY24. This demonstrates Manba’s commitment to prudent risk management practices and regulatory compliance.

In terms of profitability, Manba Finance witnessed a remarkable 70.2 percent year-on-year growth in net profit, reaching Rs 16.58 crore in FY23. The net interest income surged by 46.1 percent to Rs 69.5 crore during the same period, indicating strong operational performance and efficient asset utilization. Notably, the net interest margin expanded to 12.31 percent in FY23, showcasing enhanced profitability metrics compared to the previous fiscal year.

Despite fluctuations in Assets under Management (AUM), with a growth of 27.80 percent to Rs 633.7 crore in FY23, followed by a slight decline to Rs 495.8 crore in FY24, Manba Finance has demonstrated resilience and adaptability in managing its loan portfolio effectively.

For the six-month period ending September FY24, Manba Finance reported a net profit of Rs 16.8 crore, supported by net interest income of Rs 38.65 crore and total income of Rs 88.3 crore. The AUM stood at Rs 733.7 crore, reflecting sustained growth momentum and market penetration.

These robust financial indicators underscore Manba Finance’s strong position in the NBFC space and bode well for its future growth prospects, as it prepares to embark on its IPO journey to further strengthen its capital base and expand its lending operations. Investors and stakeholders are eagerly awaiting further details and developments regarding the upcoming IPO.

As Manba Finance charts its course towards its impending initial public offering (IPO), it operates within a competitive landscape alongside established listed peers in the non-banking finance sector. Notable competitors include Baid Finserv, MAS Financial Services, and Arman Financial Services, each vying for market share and investor attention.

These listed peers bring their own strengths and offerings to the table, contributing to a dynamic environment in the financial services sector. Manba Finance will need to leverage its unique value proposition, operational efficiency, and strategic initiatives to carve out its niche and gain traction among investors.

Hem Securities, a prominent name in the financial services industry, has been appointed as the book running manager to the issue. With their expertise and experience in managing capital market transactions, Hem Securities is poised to play a pivotal role in facilitating the successful execution of Manba Finance’s IPO.

As Manba Finance navigates through the competitive landscape and prepares to tap into the capital markets, investors and stakeholders will closely monitor developments, assessing the company’s positioning, growth prospects, and execution capabilities. With the support of its appointed book running manager and a compelling business proposition, Manba Finance aims to make a notable impact in the financial services arena through its forthcoming IPO.

Sources: moneycontrol.com