Ahmedabad: Manba Finance Limited, a NBFC-BL providing financial solutions for New two-wheeler (2Ws,) three-wheeler (3Ws), electric two-wheeler (EV2Ws), electric three-wheeler (EV3Ws), Used Cars, Small Business Loans and Personal Loans, has fixed the price band of Rs 114/- to Rs 120/- per Equity Share of face value Rs 10/- each for its maiden initial public offer, the company said today.

As per an official statement, “The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, September 23, 2024, for subscription and close on Wednesday, September 25, 2024. Investors can bid for a minimum of 125 Equity Shares and in multiples of 125 Equity Shares thereafter. The IPO is entirely a fresh issue of up to 1,25,70,000 shares with no offer of sale component. The proceeds from its fresh issuance will be utilized to augmenting the capital base to meet the Company’s future capital requirements.”

“Manba Finance commenced its business in 1998 as a NBFC from Mumbai, Maharashtra and scaled up its operations from 2009 by way of growth in number of branches and locations across states. Its branches are located in urban, semi-urban and metropolitan cities and towns which serves the surrounding rural areas. It is based out of Mumbai, Maharashtra and operates out of 66 Locations connected to 29 branches across six (6) states in western, central and north India,” the statement further said.

As per the press note, “Manba Finance had the one of the highest shares of Two-wheeler loans at 92% of AUM in fiscal 2024. It also had the third highest AUM per branch at Rs 14.41 crore among Arman Financial, Baid Finserv, Berar Finance, Hero Fincorp, MAS Financial, Muthoot Fincorp, and TVS Credit, and the fastest growth in branches with a CAGR of 40.3% from FY 2022 to FY 2024.”

“Manba Finance’s Assets Under Management (AUM) increased from Rs 495.82 crore in FY 2022 to Rs 936.85 crore in FY 2024. with a CAGR of 37.46%. Manba Finance clocked a profit of Rs 31.41 crore in the financial year FY24, up 89.50% from Rs 16.58 crore in the previous year. Revenue during the year FY24 increased significantly to Rs 191.58 crore from Rs 133.32 crore in the previous year, an increase of 43.71%, primarily due to an increase in interest income,” the note further says.

The issue is being made through the book-building process, wherein not more than 50% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the issue shall be available for allocation to non-institutional bidders, and not less than 35% of the issue shall be available for allocation to retail individual bidders.

Hem Securities Limited is the sole book running lead manager, and Link Intime India Private Limited is the registrar of the issue, the company stated.