Schedule of Manba Finance
| Issue open date | 23 Sep 2024 |
| Issue close date | 25 Sep 2024 |
| UPI mandate deadline | 25 Sep 2024 (5 PM) |
| Allotment finalization | 26 Sep 2024 |
| Refund initiation | 26 Sep 2024 |
| Share credit | 27 Sep 2024 |
| Listing date | 30 Sep 2024 |
| Mandate end date | 10 Oct 2024 |
| Lock-in end date for anchor investors (50%) | 26 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 25 Dec 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Manba Finance
Incorporated in 1998, Manba Finance is a non-banking financial company (NBFC-BL) providing financial solutions for new two-wheeler (2Ws,) three-wheeler (3Ws), electric two-wheeler (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans and personal loans. It is based out of Mumbai, Maharashtra, and operates out of 66 locations connected to 29 branches across six states in western, central, and north India. The company’s AUM size is more than ₹ 900 crores as of March 31, 2024, with salaried and self-employed clients being their target customers.
Financials of Manba Finance
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹150.84 crores |
| Fresh Issue | ₹150.84 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Augmentation of capital base to meet future capital requirements | 138.77 (92%) |
| General corporate purposes and issue-related expenses | 12.07 (8%) |
Strengths
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Ability to expand to new underpenetrated geographies. It has scaled up its operations from 2009 with vehicle financing and is now present in 66 locations spread across six states in western, central, and north India.
- The company’s technology-driven and scalable operating model is helping it and its customers with a quick Turn Around Time (TAT) for loan processing.
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The company’s extensive collection infrastructure and processes are leading them to a well-maintained asset quality.
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The company has access to diversified and cost-effective long-term borrowing. Its diversified sources include term loans and cash credit facilities from PSU banks, private sector banks, small finance banks, & other financial institutions, and PTC and the issuance of privately placed listed and unlisted NCDs to meet its capital requirements.
- It has established strong relationships with more than 1,100 dealers, including more than 190 EV dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.
Risks
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Business and future prospects might be adversely impacted if maintaining relationships with dealers, from whom a significant part of the New Vehicle Loans business is derived, becomes challenging.
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New Vehicle Loans account for 97.90% of AUM. A lack of product diversity in loan offers might harm the company’s growth, prospects, and financial standing.
- Any downgrade in credit ratings could lead to higher borrowing costs, hinder financing acquisition, and negatively affect the business, operational results, and financial health.
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Potential asset-liability mismatches could impact liquidity and subsequently have a negative impact on operations and profitability.
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Negative cash flows from operating activities were recorded in Fiscals 2024 and 2023, and if this trend continues, it could adversely affect cash flow needs, thus hampering the ability to operate the business, implement growth plans, and undermine financial health.
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Participation in markets that are competitive and have ever-changing customer needs, means that failing to compete effectively with already established companies and new market participants, could result in a negative effect on the business.