Considering the upper price band of Rs 120, the stock is expected to trade at a premium of 32% over the issue price.
However, it is important to note that gray market premiums are only an indicator of how the company’s shares accumulate in the unlisted market and are subject to change quickly.
The company intends to use the proceeds from the fresh issue to increase its capital base and meet future capital requirements.
Headquartered in Mumbai, the company offers financial solutions to both salaried and self-employed workers, offering fast turnaround time (TAT) for loan approval and disbursement.
In FY24, Manba Finance had one of the highest shares in two wheel loanswhich represents 92% of its assets under management (AUM). It also ranks third in AUM per branch at Rs 14.41 crore, behind companies like Arman Financial, Baid FinservBerar Finance, Hero Fincorp, MAS Financial, Muthoot Fincorp and TVS Credit. Manba Finance also had the fastest branch growth, with a CAGR of 40.3% from FY2022 to FY2024. Its AUM increased from Rs 495.82 million in FY2022 to Rs 936.85 million. rupees in FY2024, reflecting a compound annual growth rate (CAGR) of 37.46%.
The company posted a profit of Rs 31.41 crore in FY24, an increase of 89% from Rs 16.58 crore in the previous year. Revenue for FY24 grew significantly to Rs 191.58 crore from Rs 133.32 crore in FY23, an increase of 44%, mainly driven by higher interest income.
Hem Securities acted as the sole book-running manager and Link Intime India was the registrar for the issue.
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