Manba Finance Limited

About Manba Finance Limited  Incorporated in 1996, Manba Finance Limited is a Non-Banking Financial Company-Base Layer (NBFC-BL). It provides 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.  The Mumbai-based company operates out of 66 locations connected to 29 branches across six states in western, central, and northern India. It has a network of 1,100 dealers, including 190+ EV dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.  As of FY24, nearly 98% of the total loan portfolio comprises new vehicle loans with an average ticket size (ATS) of around ₹80,000 for two-wheeler loans and an average ticket size (ATS) of around ₹1,40,000 for three-wheeler loans.  To meet its capital requirements, Manba Finance secures its funding from diversified sources, including term loans and cash credit facilities from public-sector banks, private-sector banks, small finance banks, and other financial institutions.  The company's target customers are mainly salaried and self-employed individuals. As of FY24, Manba Finance had an AUM (Assets Under Management) of ₹936 crore.  Between FY22 and FY24, it saw a CAGR rise of 23.6% in its AUM and over 47% in its net profit. Moreover, NBFC credit in India is expected to grow 15% to 17% between FY24 and FY27, which could benefit the company.  Now, Manba Finance Limited is launching its initial public offer (IPO). The total IPO issue size is ₹150.84 crore, comprising entirely of fresh issue. The money raised from the fresh issue will be used to augment its capital base to meet future capital requirements. Its shares will be listed on the NSE and BSE.  Here are key details about the Manba Finance IPO:     Company Name  Manba Finance Limited   Company Type  Private    Company Established On  1996   Manba Finance Limited IPO Opening Date  23rd September 2024    Manba Finance Limited IPO Closing Date  25th September 2024   Manba Finance Limited IPO Allotment Status  26th September 2024    Credit of Shares to the Demat Account  27th September 2024   Manba Finance Limited IPO Listing Date  30th September 2024    Manba Finance Limited IPO Face Value  ₹ 10 per share   Manba Finance Limited IPO Lot Size  125 shares    Manba Finance Limited IPO Issue Size  Approx ₹150.8 crore   Manba Finance Limited IPO to be Listed on  BSE, NSE    Manba Finance Limited IPO Price band  ₹ 114 – ₹ 120 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 106 crore  ₹ 133 crore  ₹ 191 crore    Net Profit  ₹ 9.74 crore  ₹ 16.5 crore  ₹ 31.4 crore              Here’s a quick look at Manba Finance Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Established relationships with 1,100 dealers as its dealer network acts as a point of sale in its business model.  Ability to expand to new underpenetrated geographies as it is present in 66 locations across 6 states in India.  Access to diversified and cost-effective long-term borrowing from PTC and issuance of privately 211 placed listed and unlisted NCDs along with banks.  Technology-driven and scalable operating model with quick Turn Around Time (TAT) for loan processing.  Three-tier collection infrastructure comprising tele-calling, field collection, and legal recovery with a collections team of 446 personnel.  The company had a gross and net NPA of 3.95% and 3.16%, respectively, in FY24.   Risks and threats   Lack of diversity in its loan products as new vehicle loans constitute 97% of its AUM.  Has experienced negative cash flows from operating activities amounting to ₹124 and ₹141 crore in FY23 and FY24, respectively.  It faces competition from commercial banks, NBFCs, small finance banks, lending platforms, e-commerce companies, and payment service providers, along with private unorganised and informal financiers who principally operate in the local market.  Operating in a seasonal industry and economic downturn might affect its liquidity and revenue.  Subject to inspections by the Reserve Bank of India and non-compliance could expose it to penalties and restrictions.  As of FY24, 43% of its total disbursement went to first-time borrowers, increasing the risk of non-payment or default.  Affected by the volatility in interest rates in its treasury operations.            Manba Finance Limited IPO details  | Manba Finance Limited IPO date  According to the offer document filed by the company with the SEBI, the Manba Finance IPO’s opening date – in other words, the Manba Finance IPO launch date – will be 23rd September 2024. The Manba Finance IPO closing date is 25th September 2024. After this, investors will be updated about the allotment status on 26th September 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 27th September 2024. The Manba Finance IPO listing date is 30th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Manba Finance Limited IPO Price Band  The IPO is a fresh issue. The Manba Finance IPO price band has been set between ₹114 and ₹120 per share. Interested investors can choose a price within this band to apply for the IPO.  The Manba Finance IPO listing price will be determined on 30th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Manba Finance Limited IPO Lot size  The Manba Finance IPO details have been declared. The Manba Finance IPO lot size is set at 125 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Manba Finance IPO issue size is approx ₹150.8 crore.           How to pre-apply for the Manba Finance Limited IPO?  You can pre-apply for the Manba Finance Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Manba Finance Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Manba Finance Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Manba Finance Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Manba Finance Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Manba Finance Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Manba Finance Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Manba Finance Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Manba Finance Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Manba Finance Limited IPO  To apply for the Manba Finance Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Manba Finance Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Manba Finance Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.