Manba Finance Ltd is a RBI registered NBFC based in Mumbai,. It is engaged in mainly in Two-Wheeler Financing, Manba Finance IPO is set to raise Rs 150.84 crores. The issue is entirely a fresh issue of shares.
IPO opens
September 23, 2024
IPO Closes
September 25, 2024
IPO Size (Rs.)
₹150.84 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹114 to ₹120 per share
Minimum Lot
125 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
Hem Securities Limited i
Registrar
Link in Time
About Manba Finance IPO:
Company was originally incorporated as ‘Manba Finance Pvt. Ltd’, at Mumbai, Maharashtra, in May 1996. T
Conversion to a public limited company in January 2005, the name was changed to ‘Manba Finance Ltd’.
RBI granted a certificate of registration in January 2022, to carry on business of non-banking financial institutions without accepting public deposits.
Manba Finance is a Base Layer (NBFC-BL) regulated by the RBI, 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.
Manba Finance operates out of 66 Locations connected to 29 branches across 6 states in western, central and north India. The company has established relationships with more than 1,100 Dealers, including more than 190 EV Dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh and Uttar Pradesh.
The company’s target customers are primarily (i) salaried; and (ii) self-employed individuals. The company offers customized products and tailor-made schemes to attract prospective customers.
The Company’s Corporate Promoters are Manba Investments and Securities Private Limited, Avalon Advisory and Consultant Services Private Limited, Manba Fincorp Private Limited, Manba Infotech LLP and Manish Kiritkumar Shah (HUF).
Financials : Manba Finance IPO
Particulars / Rs. Cr
2024
2023
2022
Revenue from Operations
191.59
133.32
106.59
Revenue Growth (%) as stated
43.71
25.07
–
EBITDA as stated
125.25
83.85
63.04
Adjusted EBITDA Margin (%)
65.38
62.9
59.14
Net Profit
31.42
16.58
9.74
Net Profit (%)
16.47
12.52
9.2
Share Capital
31.42
12.56
12.56
Net Worth
200.61
168.43
151.74
Net Borrowings
752.27
595.93
394.4
RONW (%)
15.66
9.84
6.42
NAV (₹)
53.26
44.71
40.28
ROE (%)
17.03
10.36
6.63
Gross NPA (%)
3.95
3.74
4.94
Net NPA (%)
3.16
3.14
4.3
Post issue Share Capital
50.23
FV
10.0
IPO price
120.0
EPS Fy234
6.3
PE
19.2
Market cap in Lacs
603
Market cap / Sales
3.15
Anchor: Manba Finance IPO
Salient Points: Manba Finance IPO
Company is a systemically important non-deposit taking non-banking finance company registered with the RBI.
The primary objective is to expand the company’s capital base and support its growth strategies in the non-banking financial services sector..
Company is present in Maharashtra, Gujarat, Rajasthan, and has recently expanded its presence in Chhattisgarh, Madhya Pradesh and Uttar Pradesh.
Borrowing cost stood at 11.98%, while lending is done at an average rate of 20+%. ensuring good spread.
NPA of 3.16% is high. As per management, this is attributed to a financing JV with Muthoot group. On standalone basis, the NPAs are around 1%.
P/E ratio stands at ~ 19.2x.
Listed Peers:
Name of the company
CMP
Income (cr)
PAT (cr)
NPM%
P/E
P/B
RoNW
D/E
Manba Finance
120
191.63
31.42
16.4%
19.2
1.72
15.66
3.75
Baid Finserv
15.4
66.36
12.92
19.5%
17.8
1.06
7.75
1.45
Arman Financial Services
1,824
661.53
173.57
26.2%
11.6
2.15
21.36
2.09
MAS Financial Services
298
1,285.68
254.01
19.8%
20.4
2.55
14.25
4
Closest peer is Baid Finserv and pricing appears to be towards higher end.
Company is increasing focus on financing electric two-wheelers and three-wheelers presents good growth opportunity.
70% business comes from Maharashtra. “In Maharashtra, tier 1 cities contribute 55% of business and the rest 45% comes from tier 2 cities,”
20% of the revenue comes from Gujarat and the remaining 10% from the rest of the states.
About 97.90% of its loan portfolio comprises of New Vehicle Loans. It has highest concentrations in two-wheeler loans, comprising 92 per cent of its AUM in FY24. I
Manba Finance has over time extended its credit portfolio. It now gives loans for three-wheelers, electric three-wheelers, used cars and small businesses. They also offers top ups and personal loans for existing customers.
I have a neutral view on Manba Finance IPO due to its size but likely to apply on the IPO. Concerns stems from higher NPA and size though its growth has been good. Between FY22 and FY24, the company recorded a CAGR of 34% in total income and 76%in net profit.
GMP as reported on social media has been Rs. 60 (50%)
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
