The initial public offering (IPO) of Manba Finance, a non-banking financial company, concluded last week with high investor interest. The company offered its shares in the price range of Rs 114-120 during September 23-25.
According to the details available, the IPO saw massive demand from all investor categories. The quota for qualified institutional buyers (QIBs) was oversubscribed 148 times while that of non-institutional investors saw a subscription of over 511 times. The portion for retail investors was also booked 144 times. Overall, the issue was oversubscribed 224 times, reflecting strong appetite among market participants.
The issue aimed to raise Rs 150.84 crore through fresh issuance of 1.25 crore shares. Manba Finance plans to use the proceeds for augmenting its capital base to meet future capital requirements.
Currently, grey market premiums for the stock have declined to around Rs 58-60 per share from the initial level of Rs 64-65, though it still points to a potential listing pop of nearly 50%. Allotment of shares is expected to be finalized this week on Friday.
Investors can check the subscription status and shares allotted online on the website of the registrar Link Intime as well as the Bombay Stock Exchange (BSE). The tentative date for listing on BSE and NSE is September 30.
Manba Finance operates as an NBFC engaged in providing vehicle finance and other loans like business and personal loans. It has an established network across India. The strong response to the IPO reflects investor confidence in the company’s business model and future outlook. However, rising costs and potential asset quality issues remain key monitorables.
