Manba Finance
Book Building issueMainboardNSE₹151 Cr issue
+25.00%
Listing gain over issue price
Issue size
₹151 Cr
1 lot at cut-off
₹15,000
Lot size
125shares
Open
23 Sep 2024
Close
25 Sep 2024
Allotment
26 Sep 2024
Listing
30 Sep 2024
Listing performance
Issue price
₹120
Listed at
₹150
Listing-day close
₹157.45
Latest price
₹139.01
Close on 23 Oct 2026
Listing gain
+25.00%
Return since issue
+15.84%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Sep 2024 – 25 Sep 2024
- Listing date
- 30 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹120 per share
- Lot size
- 125 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹151 Cr
- Market cap at offer price
- ₹603 Cr
- Promoter holding
- 100.00% → 74.98% pre-issue → post-issue
- ISIN
- INE939X01013
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 324, Runwal Heights Commercial Complex, L.B.S Marg, Opp.Nirmal Lifestyle, Mulund (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 37,71,000 | — | — |
Application size
Minimum 125 shares per lot, in multiples, at ₹120
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 125 | ₹15,000 |
| Retail (max) | 13 | 1,625 | ₹1,95,000 |
| S-HNI (min) | 14 | 1,750 | ₹2,10,000 |
| S-HNI (max) | 66 | 8,250 | ₹9,90,000 |
| B-HNI (min) | 67 | 8,375 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
37,71,000
Anchor portion
₹45.25 Cr
at ₹120 per share
Valuation and performance
Valuation at offer price
₹120 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.34 | 6.25 |
| P/E (×) | 14.39 | 19.20 |
| Price to book (×) | 2.25 | — |
| Market cap | — | ₹603 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 15.66%
- ROCE
- 19.39%
- Debt / equity
- 3.75
- NAV per share
- ₹53.26
- Price to book
- 2.25
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Manba Finance
Manba Finance Limited was incorporated in 1996 as a private limited company and converted to a public limited company in 2005. It is regulated by the Reserve Bank of India and holds a certificate of registration as an NBFC. The company commenced its financing business in 1998 from Mumbai and scaled operations from 2009, focusing initially on vehicle financing. As of March 31, 2024, the company has an asset under management (AUM) size of more than ₹90,000 lakhs. The company operates through 66 Locations connected to 29 branches across six states (Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh and Uttar Pradesh) and has established relationships with more than 1,100 dealers, including more than 190 EV dealers. The company makes money primarily through interest income from loans (88% of revenue as of FY 2024), with additional revenue from financial charges, commission income, interest on security deposits and fixed deposits.
Company Analysis
from RHPManba Finance Limited is a Non-Banking Financial Company – Base Layer (NBFC-BL) providing financial solutions for two-wheelers, three-wheelers, electric vehicles, used cars, small business loans and personal loans across western, central and north India.
Manba Finance Limited was incorporated in 1996 as a private limited company and converted to a public limited company in 2005. It is regulated by the Reserve Bank of India and holds a certificate of registration as an NBFC. The company commenced its financing business in 1998 from Mumbai and scaled operations from 2009, focusing initially on vehicle financing. As of March 31, 2024, the company has an asset under management (AUM) size of more than ₹90,000 lakhs. The company operates through 66 Locations connected to 29 branches across six states (Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh and Uttar Pradesh) and has established relationships with more than 1,100 dealers, including more than 190 EV dealers. The company makes money primarily through interest income from loans (88% of revenue as of FY 2024), with additional revenue from financial charges, commission income, interest on security deposits and fixed deposits.
Non-Banking Financial ServicesVehicle FinanceConsumer FinanceLending
Objects of the Issue
- Augmenting our capital base to meet our future capital requirements 13,877.28 lakhs p.27
- The document does not specify the individual objects of the issue as the 'Objects of the Issue' section is referenced on page 121 but not included in this part of the document (pages 52-82). p.83
- Augmentation of our capital base to meet our future capital requirements ₹13,877.28 lakhs p.121
Issue Structure
- Total Issue
- Up to 1,25,70,000 Equity Shares of face value ₹ 10 each aggregating up to ₹ [●] lakhs
- Fresh Issue
- Up to 1,25,70,000 Equity Shares of face value ₹ 10 each aggregating up to ₹ [●] lakhs
- Offer for Sale
- Not applicable
- Price Band
- Floor Price ₹ [●] per Equity Share and Cap Price ₹ [●] per Equity Share (Cap Price shall be at least 105% of the Floor Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The company earns revenue primarily through interest income on loans provided to customers for vehicle purchases (two-wheelers, three-wheelers, electric vehicles, used cars) and other loans (small business loans and personal loans). About 97.90% of the loan portfolio comprises New Vehicle Loans. The company sources approximately 89% of disbursements through dealers who refer customers. The company diversifies funding sources through non-convertible debentures (NCDs), bank facilities, securitization, direct assignment of loans and other instruments.
Business Segments
Loans offered by the Company to customers for the purchase of new 2W including Top-up Loans
Loans offered by the Company to customers for the purchase of new 3W
Loans offered by the Company to customers for the purchase of Used Cars
Loans offered by the Company to customers for the purchase of Used Two Wheelers
Loans offered by the Company to individuals and MSMEs for their business purposes
Loans offered to individuals for their funding requirements
Secured lending for purchase of new two-wheeler vehicles
Secured lending for purchase of new three-wheeler vehicles; company started offering these from Fiscal 2023
Secured lending for purchase of used cars up to 12 years old with funding tenure between 12 to 48 months and ticket size between ₹2.00 lakhs to ₹6.00 lakhs
Unsecured lending to MSME businesses with ticket size ranging from ₹0.75 lakhs to ₹10.00 lakhs for tenure of 12-48 months, targeting kirana stores, medical stores, carpenters, small manufacturing units and tailors
Unsecured lending up to ₹1.00 lakh to salaried and self-employed individuals requiring immediate funds; company launched this in July 2023
Additional secured lending to existing customers
Provides loans for the purchase of new two wheelers
Provides loans for the purchase of three wheelers
Provides unsecured personal loans to customers
Provides loans to small business enterprises
Provides loans for the purchase of used two wheelers
Provides loans for the purchase of used cars
Provides financing for purchase of new two-wheelers with average ticket size of ₹80,000, funding up to 85% of on-road price, with more than 85% of loans sanctioned same day
Provides financing for purchase of new three-wheelers with average ticket size of ₹1,40,000, targeting commercial operators and last-mile delivery businesses
Additional credit facility for existing two-wheeler loan customers who have completed their repayment on time, provided over and above existing vehicle loan secured against original asset
Financing for purchase of pre-owned four-wheelers up to 12 years old with ticket size between ₹2.00 lakhs to ₹6.00 lakhs, targeting existing two-wheeler customers
Unsecured loans for MSME businesses with ticket size ₹0.75 lakhs to ₹10.00 lakhs for tenure of 12-48 months, targeting small businesses like kirana stores, medical stores, carpenters, manufacturing units
Unsecured personal loans up to ₹1.00 lakh for salaried and self-employed individuals, launched July 2023 with focus on quick TAT for sanction and disbursement
Financing for purchase of used two-wheelers to upgrade existing vehicle owners
Financing for purchase of electric two-wheelers and three-wheelers, with relationships established with more than 190 EV dealers
Financing for new two-wheeler vehicles
Financing for new three-wheeler vehicles (started from FY2023)
Additional financing on existing vehicles
Financing for used two-wheelers and used cars
Personal loans to individuals (launched July 2023)
Unsecured loans for small business purposes (launched December 2023)
Financing of new two-wheeler vehicles
Financing of new three-wheeler vehicles. The Company started offering Three Wheeler loans from Fiscal 2023
Top-up loans provided on existing vehicle collateral
Financing of used two-wheeler vehicles
Financing of used car vehicles
Unsecured personal loans. The Company started offering Personal Loans from July 2023
Unsecured business loans. Unsecured Business Loan were offered from December 2023
Financing of new two-wheeler vehicles with average ticket size of around ₹80,000
Financing of new three-wheeler vehicles with average ticket size of around ₹1,40,000
Financing of electric two-wheelers and three-wheelers through relationship with 190 EV dealers
Recently expanded loan portfolio for used cars
Recently expanded loan portfolio for small business lending
Recently expanded loan portfolio for personal lending
SWOT Analysis
Strengths
- • Established dealer relationships and sourcing capability(p.34)
- • Strong loan disbursement efficiency and quick turnaround(p.35)
- • Consistent profitability growth(p.50)
- • Geographic expansion across multiple states(p.50)
- • Market position in vehicle financing(p.35)
- • Rapid gross loan book growth with efficient net interest margins(p.52)
- • Highly secured loan portfolio mitigating credit risk(p.52)
- • Superior loan processing speed vs. competitors(p.53)
- • Cloud-based systems reducing operational friction(p.53)
- • Established branch network across six states(p.54)
- • High capital adequacy ratio indicating financial strength(p.66)
- • Established dealer relationships(p.127)
- • Geographic expansion potential into underpenetrated areas(p.127)
- • Access to diversified, cost-effective borrowing(p.127)
- • Technology-enabled, scalable operating model(p.127)
- • Strong asset quality management infrastructure(p.127)
- • Experienced promoters and professional management(p.127)
- • Strong growth in AUM(p.129)
- • Solid profitability metrics(p.129)
- • Established dealer relationships providing sourcing advantage(p.210)
- • Rapid loan processing with 85%+ same-day sanction(p.214)
- • Diversified funding sources reducing dependence on single source(p.210)
- • Experienced management with deep NBFC sector expertise(p.212)
- • Strong in-house collections infrastructure maintaining asset quality(p.211)
- • Technology-enabled operations enabling operational efficiency(p.211)
- • Advanced proprietary technology platform for credit assessment and loan management(p.226)
- • Diversified product portfolio across multiple vehicle segments and emerging categories(p.231)
- • Significant AUM growth trajectory and rapid expansion(p.246)
- • Strong profitability growth and return on equity improvement(p.278)
- • Experienced founding team with 25+ years of NBFC sector expertise(p.251)
- • Significant AUM growth trajectory across all three years(p.284)
- • Rapid expansion of geographic footprint and operational scale(p.284)
- • Improving operational efficiency with growing AUM per employee(p.284)
- • Strong profitability growth with improving Return on Equity(p.292)
- • Diverse funding sources reducing concentration risk(p.286)
- • Strong capital adequacy with Tier I Capital ratio above regulatory thresholds(p.285)
- • Diversified product portfolio reducing single-product dependency(p.287)
- • Growing AUM with strong disbursement trajectory(p.366)
- • Effective credit underwriting and NPA management(p.366)
- • Diversified funding sources reducing dependence(p.367)
- • Established dealer network and geographic presence(p.366)
- • Strong profitability growth and improved margins(p.378)
- • Technology-driven platform enabling scalability(p.368)
Weaknesses
- • High concentration in single loan product(p.35)
- • Negative operating cash flows(p.38)
- • High employee attrition(p.37)
- • Dependence on dealer relationships(p.35)
- • Missing historical records and documents(p.44)
- • Related party transactions exposure(p.45)
- • Heavy dependence on a limited customer base in vehicle lending(p.55)
- • Exposure to first-time borrower default risk(p.60)
- • Concentration risk in salaried and self-employed customer segments(p.56)
- • Repeated delays in regulatory filings with RBI despite no penalties(p.57)
- • Outstanding litigation involving promoters creating reputation risk(p.52)
- • Limited operating history in newly expanded regions(p.63)
- • Heavy reliance on debt financing limiting financial flexibility(p.72)
- • Concentrated customer base dependency(p.34)
- • High leverage to equity ratio(p.129)
- • Elevated NPA levels relative to peers(p.133)
- • Geographic concentration in six states(p.127)
- • Declining capital adequacy ratio(p.129)
- • Deteriorating spread over time(p.129)
- • Elevated gross NPA ratio relative to peers in two-wheeler segment(p.206)
- • High cost of borrowings increasing funding pressure(p.206)
- • High leverage with debt-to-equity ratio of 3.75(p.208)
- • Concentrated portfolio with 97.90% in vehicle loans(p.214)
- • Recent entrant into new product categories with limited track record(p.213)
- • High concentration of promoter ownership with limited public float(p.266)
- • Significant leverage with debt-to-equity ratio of 3.75(p.228)
- • Delays in TDS and provident fund payments to employees(p.228)
- • Elevated gross NPA ratio of 3.95% and rising non-performing asset levels(p.280)
- • Geographic concentration of operations with 29 branches mostly in western India(p.230)
- • Rising leverage ratio indicating increased debt burden(p.285)
- • Deteriorating asset quality with increasing gross NPA ratios(p.289)
- • Increasing Stage 3 ECL provision indicating rising non-performing assets(p.284)
- • Rising impairment expense as proportion of revenue(p.333)
- • High concentration of AUM in Maharashtra state(p.290)
- • Significant portion of new products (Personal Loans, Small Business Loans, Three-wheeler loans) with limited performance history(p.288)
- • High leverage and debt-equity ratio(p.347)
- • Declining CRAR indicating capital pressure from rapid growth(p.385)
- • Heavy dependence on specific collateral type (vehicles)(p.370)
- • Concentration in vehicle lending reducing diversification(p.388)
- • Declining net interest margin(p.373)
Opportunities
- • Growth in two-wheeler market with EV penetration(p.26)
- • Expansion of two-wheeler financing disbursements(p.27)
- • Diversification into new loan products(p.36)
- • Leverage existing branch network for new products(p.50)
- • Expansion into adjacent loan products (used car, personal, business loans)(p.54)
- • Large untapped market of small businesses with limited formal financing access(p.54)
- • Growing demand for rapid-TAT personal lending solutions(p.55)
- • Geographic expansion within existing operating states(p.66)
- • Retail credit market growth(p.158)
- • Expanding two-wheeler financing market(p.122)
- • Underpenetrated rural and semi-urban credit markets(p.161)
- • Growing Middle India households(p.153)
- • Rising financial inclusion and digital penetration(p.156)
- • Favorable government policy support for financial inclusion(p.150)
- • Personal loan and small business loan expansion(p.123)
- • Growing NBFC credit expansion in retail segment at 14-16% CAGR(p.164)
- • Two-wheeler financing market growth at 14-16% CAGR FY24-27(p.175)
- • Electric two-wheeler market penetration reaching 25-30% by FY29(p.177)
- • Three-wheeler financing growth at 23-25% CAGR FY24-27 with EV adoption(p.183)
- • Used car financing market growth potential at 13-15% CAGR(p.185)
- • MSME lending market with huge credit gap of ₹1,030,000,000 Lakh(p.190)
- • NBFCs gaining market share in two-wheeler financing at 65% share(p.181)
- • Expansion into underpenetrated geographies with rural infrastructure development(p.176)
- • Growing used vehicle finance segment with recent entry into used cars(p.227)
- • Expansion of unsecured lending products (personal loans, small business loans)(p.246)
- • Co-lending partnerships to expand reach and funding capacity(p.246)
- • EV finance growth opportunity in two-wheeler and three-wheeler segments(p.246)
- • Geographic expansion into new states and underserved markets(p.246)
- • Expansion into new vehicle segments and product categories(p.288)
- • Geographic expansion beyond current concentrated footprint(p.290)
- • Strengthening market position through scale and operational improvements(p.285)
- • Diversification into unsecured lending segments(p.288)
- • Opportunity to improve margins through refinement of product mix and pricing(p.292)
- • Expansion into new loan products beyond vehicle financing(p.366)
- • Growing EV two-wheeler and three-wheeler market(p.366)
- • Geographic expansion into adjacent regions(p.368)
- • Further penetration of underserved segments(p.366)
Threats
- • Intense competition from banks and other NBFCs(p.41)
- • RBI regulatory changes and policy shifts(p.41)
- • Seasonal business volatility(p.51)
- • Dealer non-exclusivity and switching risk(p.35)
- • Credit rating downgrade risk(p.36)
- • Economic downturn impact on lending(p.51)
- • Vehicle depreciation reducing collateral recovery value(p.53)
- • Rising competition from larger NBFCs and banks with superior resources(p.62)
- • Interest rate volatility impacting net interest margins(p.63)
- • Economic slowdown reducing demand for retail vehicle loans(p.77)
- • Regulatory changes imposing additional compliance burden(p.74)
- • Unfavorable changes in vehicle-related regulations affecting portfolio quality(p.56)
- • Customer default risk from economic stress in low-to-middle income segment(p.57)
- • RBI inspection and potential regulatory penalties or restrictions(p.57)
- • Regulatory changes affecting NBFC lending(p.158)
- • Economic slowdown and moderated GDP growth(p.147)
- • Rising cost of borrowing(p.129)
- • Monetary tightening and rate headwinds(p.147)
- • Increased competition in NBFC sector(p.158)
- • Commodity price volatility and geopolitical risks(p.147)
- • Weather and agricultural risks(p.148)
- • Two-wheeler sales volume still 10% below pre-pandemic peak FY19(p.173)
- • Asset quality stress in personal loans segment with GNPA at 7.2% in FY24(p.196)
- • Regulatory changes in RBI scale-based regulations impacting provisioning and capital requirements(p.169)
- • High competition from banks and captive NBFCs in two-wheeler financing(p.179)
- • Price hikes affecting vehicle affordability and demand(p.173)
- • Monsoon and agricultural income dependent rural demand volatility(p.175)
- • OBD-II norms expected to further increase vehicle cost by 3-5%(p.173)
- • Rising cost of funds reducing net interest margins(p.172)
- • Competitive pressure from established banks and larger NBFCs with superior funding access(p.228)
- • Regulatory changes and compliance burden from RBI scale-based regulation framework(p.231)
- • Increasing provisions and credit cost requirements on NPA portfolio(p.280)
- • Dependence on secured lending against vehicle collateral with cyclical asset values(p.282)
- • Rising cost of borrowings and interest rate pressure on spreads(p.281)
- • Regulatory risk from evolving RBI prudential norms and NBFC regulations(p.309)
- • Rising borrowing costs impacting profitability(p.286)
- • Two-wheeler segment concentration risk with volatile demand(p.287)
- • Economic cyclicality affecting borrower repayment capacity(p.289)
- • Potential adverse macro factors impacting asset quality(p.296)
- • Competitive pressure from larger NBFCs and banks in two-wheeler financing segment(p.285)
- • Interest rate sensitivity with majority fixed-rate borrowings(p.287)
- • Interest rate volatility impacting net interest margin(p.367)
- • Economic downturn and customer default risk(p.370)
- • Regulatory constraints on funding and capital adequacy(p.367)
- • Intense competition in vehicle financing(p.388)
- • Seasonal cyclicality affecting business stability(p.388)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Manish Kiritkumar Shah | Individual Promoter | 17.41% | [●] |
| Nikita Manish Shah | Individual Promoter | 13.29% | [●] |
| Monil Manish Shah | Individual Promoter | 4.76% | [●] |
| Manba Investments and Securities Private Limited | Corporate Promoter | 36.92% | [●] |
| Avalon Advisory and Consultant Services Private Limited | Corporate Promoter | 6.63% | [●] |
| Manba Fincorp Private Limited | Corporate Promoter | 5.54% | [●] |
| Manba Infotech LLP | Corporate Promoter | 9.56% | [●] |
| Manish Kiritkumar Shah (HUF) | Individual Promoter / Hindu Undivided Family | 5.88% | [●] |
| Manish Kiritkumar Shah | Promoter/Managing Director | — | — |
| Manish Kiritkumar Shah | Promoter | 17.41% | — |
| Nikita Manish Shah | Promoter | 13.29% | — |
| Manish Kiritkumar Shah (HUF) | Promoter | 5.88% | — |
| Monil Manish Shah | Promoter | 4.76% | — |
| Manba Investments and Securities Private Limited | Promoter | 36.92% | — |
| Avalon Advisory and Consultant Services Private Limited | Promoter Group | 6.63% | — |
| Manba Fincorp Private Limited | Promoter Group | 5.54% | — |
| Manba Infotech LLP | Promoter Group | 9.56% | — |
| Mansi Hardik Shah (alias Mansi Manish Shah) | Promoter Group member | 0.01% | — |
| Manish Kiritkumar Shah | Promoter and Managing Director | — | — |
| Nikita Manish Shah | Promoter and Whole Time Director & Head - Business Development | — | — |
| Monil Manish Shah | Promoter and Whole Time Director & Chief Business Officer | — | — |
| Manish Kiritkumar Shah | Individual Promoter | 17.41% | — |
| Nikita Manish Shah | Individual Promoter | 13.29% | — |
| Monil Manish Shah | Individual Promoter | 4.76% | — |
| Manba Investments and Securities Private Limited | Corporate Promoter | 36.92% | — |
| Avalon Advisory and Consultant Services Private Limited | Corporate Promoter | 6.63% | — |
| Manba Fincorp Private Limited | Corporate Promoter | 5.54% | — |
| Manba Infotech LLP | Corporate Promoter | 9.56% | — |
| Manish Kiritkumar Shah (HUF) | Promoter Group | 5.88% | — |
| Manish K Shah | Promoter | 17% | 17% |
| Nikita M Shah | Promoter | 13% | 13% |
| Manish Kirit Shah (HUF) | Promoter | 6% | 6% |
| Monil M Shah | Promoter | 5% | 5% |
| Manba Investments and Securities Private Limited | Promoter Group | 37% | 37% |
| Avalon Advisory and Consultant Services Private Limited | Promoter Group | 7% | 7% |
| Manba Fincorp Pvt Ltd | Promoter Group | 6% | 6% |
| Manba Infotech LLP | Promoter Group | 10% | 10% |
| Manish K. Shah | Promoter/Managing Director | — | — |
Leadership
Anshu Shrivastava · Chairman
Manish Kiritkumar Shah · Managing Director
Nikita Manish Shah · Whole-time Director
Monil Manish Shah · Whole-time Director
Jay Khushal Mota · Chief Financial Officer
Bhavisha Ashish Jain · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Manba Finance IPO FAQs
What is the lot size of Manba Finance IPO?
The minimum lot size of Manba Finance IPO is 125 shares. One lot costs ₹15,000 at the cut-off price.
When does Manba Finance IPO open and close?
Manba Finance IPO opened for subscription on 23 Sep 2024 and closed on 25 Sep 2024.
What is the listing date of Manba Finance IPO?
Manba Finance IPO listed on 30 Sep 2024.