Manba Finance is launching its IPO on Monday, September 23, with a price range of ₹114 to ₹120 per share. The IPO will close on September 25 and is a fresh issue of 1.26 crore shares, worth ₹150.84 crore. The money raised will be used to strengthen the company’s capital and for general corporate purposes.
Manba Finance IPO: Strengths
- Has partnerships with 1,100 dealers.
- Can expand into new, less-served areas and currently operates in 66 locations across six states.
- Access to a variety of long-term borrowing options, including non-convertible debentures (NCDs) and loans from banks.
- Uses a scalable, technology-driven model with faster loan processing.
- Three-level collection system: tele-calling, field collection, and legal recovery.
- In FY24, its gross and net non-performing assets (NPA) were 3.95% and 3.16%, respectively.
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Manba Finance IPO: Risks
- Limited loan products, with 97% of loans for new vehicles.
- Negative cash flows in FY23 and FY24.
- Faces competition from NBFCs, banks, lending platforms, and payment service providers.
- A seasonal business that could be impacted by economic downturns.
- Subject to inspections by the RBI, with possible penalties for non-compliance.
- 43% of total loans in FY24 were to first-time buyers.
- Treasury operations could be affected by changes in interest rates.
Manba Finance IPO: Financials
| Particulars | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | ₹106 crore | ₹133 crore | ₹191 crore |
| Net Profit | ₹9.74 crore | ₹16.5 crore | ₹31.4 crore |
Manba Finance offers loans for vehicles, small businesses, used cars, and personal needs.