Manba Finance, an NBFC-BL providing financial solutions for auto loans, used cars, small business loans, filed a draft red herring prospectus with Sebi for an IPO.
The IPO is completely a fresh equity issue of 1.25 crore shares with no offer for sale (OFS) segment.
The issue is being made through the book-building process, where 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
The company is an NBFC-BL providing financial solutions for auto loans, small business loans and personal Loans with an AUM (assets under management) size of more than Rs 800 crore as on December 2023.
About 99% of its loan portfolio comprises new vehicle loans with an average ticket size (ATS) of around Rs 0.8 lakh. The company also provides financial solutions to its target customers who are looking for a quick turnaround time (TAT) for loan sanction and disbursement.
Manba is based out-of Mumbai and operates out of 65 locations connected to 28 branches across 5 states in western, central and north India.
The company has established deep and long-term relationships with more than 850 dealers, including over 60 EV dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh and Madhya Pradesh.
The company proposes to use the net proceeds for augmenting its capital base to meet its company’s future capital requirements towards onward lending, general corporate purposes and net proceeds.
In FY23, the company’s revenue from operations increased 25% year-on-year to Rs 133 crore, while net profit after tax jumped 70% to Rs 16.6 crore. For the period ended September 2023, revenues came in at Rs 88.28 crore and profit stood at Rs 16.8 crore.
Hem Securities is acting as the lead manager to the IPO and Link InTime India is the registrar.
