Manba Finance Limited made a stellar debut on the stock market on 30th September, with its shares listing at ₹150 on the BSE, 25% higher than the issue price of ₹120. While this gain was slightly lower than the 28% premium anticipated in the grey market, it still marked a positive start for the company's journey in the public markets.
The grey market, an unofficial marketplace where shares traded before an official listing, had predicted stronger returns, yet the 25% rise over the IPO price was a welcome outcome for investors.
Strong listing highlights the demand
The initial public offering (IPO) of Manba Finance raised ₹151 crore through a fresh issue of 1.26 crore shares. The response to the IPO was overwhelmingly positive, with the offer being oversubscribed by 224.10 times. The market saw bids for 197.18 crore shares during the subscription period from 23rd to 25th September, against an offer size of 87.99 lakh shares.
Non-institutional investors played a crucial role, subscribing 511.65 times the allocated portion, followed by qualified institutional buyers with 148.55 times and retail investors with 144.03 times their quotas. This strong demand showcases investor confidence in the company's growth prospects and the broader market appetite to invest in IPOs with the potential for substantial returns.
Company overview and financial focus
Founded in 1998, Manba Finance provides a variety of financial solutions, primarily focusing on vehicle financing. The company's services include financing for new and used two-wheelers, three-wheelers, electric vehicles, used cars, small business loans, and personal loans. Its customer base includes both employees and self-employed individuals, offering tailored financing programs that cover up to 85% of a vehicle's on-road price. This makes it an attractive option for individuals seeking accessible and flexible financial support.
Given its broad product offerings and strong market positioning, investors were keen to invest in the IPO to capitalise on the growth potential of the company. Manba Finance's ability to serve the ever-expanding market for electric and used vehicles, alongside traditional financing products, further strengthened its appeal during the IPO phase.
Anchor investments boost confidence
Prior to the IPO listing, Manba Finance raised ₹45.25 crore through its anchor book on 20th September. Eight institutional investors participated in the anchor book, with Chartered Finance & Leasing leading the way by acquiring 8.33 lakh shares worth ₹10 crore. Other major investors included Finavenue Capital Trust and Antara India Evergreen Fund, each purchasing 4.2 lakh shares.
These anchor investments further boosted confidence among retail and institutional investors to invest in the IPO, ensuring a robust response on the day of the listing. The company plans to use the proceeds from the IPO to strengthen its capital base, positioning itself for future growth and increased market share.
Future outlook for investors
Manba Finance's strong market debut highlights the confidence investors have in the company's business model and future growth trajectory. The funds raised through the IPO will allow the company to expand its financial offerings, especially in the rapidly growing electric vehicle market and small business financing space. This is expected to create additional opportunities for both the company and those looking to invest in IPOs.
For investors seeking opportunities in the financial sector, Manba Finance's IPO listing serves as a solid example of how successful IPOs can generate substantial returns. The company's focus on vehicle financing, coupled with a growing customer base and expansion plans, makes it a promising candidate for long-term growth. As more investors look to invest in IPOs, Manba Finance's strong debut underscores the importance of investing in companies with robust business models and a clear growth strategy.
Conclusion
Manba Finance's listing at a 25% premium over its issue price is a testament to the strong demand and investor confidence in the company. Despite a slightly lower-than-expected listing premium, the IPO's success signals a growing interest among investors to invest in IPOs with solid financial backing and a promising outlook. As Manba Finance continues to strengthen its market position, the future looks bright for both the company and its shareholders.
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