Manba Finance IPO Receives Massive 224.1 Times Subscription

The Manba Finance IPO, which concluded on September 25, 2024, saw massive demand, with a subscription of 224.1 times. Investors are now eagerly awaiting the share allotment, which will be finalized today, September 26. The IPO targeted ₹150.84 crore and attracted attention from high-net-worth individuals (HNWIs), institutional investors, and retail investors alike.

Here’s a detailed breakdown of the IPO’s success and what investors can expect next, based on the insights from recent reports.

Strong Demand Across Investor Categories

Manba Finance Ltd., a non-banking financial company (NBFC) that focuses on financing two-wheeler vehicles, saw overwhelming interest from all categories of investors. The shares on offer received bids for over 197.18 crore shares, while the offer size was 87.99 lakh shares. The enthusiasm in the market was evident, with different investor groups participating robustly.

Subscription Overview:

• Non-Institutional Investors (NIIs): Bids from NIIs were 511.65 times the reserved portion, indicating strong interest from high-net-worth individuals and wealthy investors. This is a clear sign of the confidence that large investors have in Manba Finance’s future growth.

• Qualified Institutional Buyers (QIBs): Institutional investors bid 148.55 times their allotted quota. These investors usually make more calculated, data-driven decisions, and their substantial interest indicates a positive outlook on the company’s long-term performance.

• Retail Individual Investors (RIIs): Retail investors also showed immense enthusiasm, subscribing 144.03 times their allocated portion of shares. The response from this segment demonstrates widespread belief in the company’s potential across all tiers of the investor community.

The price band for the IPO was set between ₹114 and ₹120 per share, and the issue was open for bidding from September 23 to September 25. The stock will likely see significant activity once listed, given the heavy demand.

Grey Market Premium (GMP) Performance

As the IPO came to a close, investors began keeping an eye on the grey market to gauge potential listing gains. The Grey Market Premium (GMP) offers an unofficial indicator of how a stock may perform once it debuts on the exchange.

At present, Manba Finance’s shares are trading at a strong premium in the grey market, with the GMP hovering around ₹50, indicating a potential listing at around ₹170 per share (inclusive of the GMP). If this trend holds, investors can expect to see around a 50% listing gain on the stock’s debut.

How to Check Manba Finance IPO Allotment Status

Investors who applied for shares in the IPO can check their allotment status once the process is finalized today, September 26. To check your allotment, follow these steps:

1. Visit the Registrar’s Website: Manba Finance’s IPO allotment is managed by Link Intime India Private Ltd, which serves as the official registrar for the IPO. You can visit their website at Link Intime.

2. Input Required Details: On the allotment status page, you will need to enter your PAN (Permanent Account Number), Application Number, or DP Client ID to check your status.

3. Broker’s Website: Investors can also check the allotment status through the broker platform used to apply for the IPO (such as Zerodha, Groww, or others). The broker may provide real-time allotment status updates.

4. BSE Website: Alternatively, the Bombay Stock Exchange (BSE) also provides an option to check allotment statuses. Visit the BSE IPO Allotment Status page and follow the instructions.

By following these steps, investors can quickly determine if they have been allocated shares.

What’s Next for Investors?

Once the allotment is finalized, investors can expect the following timeline:

1. Demat Account Credit: Investors who are allotted shares will see them credited to their demat accounts by September 27, 2024.

2. Refunds: Investors who did not receive an allotment will have their application money refunded, likely by September 27.

3. Listing Date: The shares of Manba Finance are expected to be listed on the stock exchanges (BSE and NSE) on or around September 30, 2024.

Given the high subscription levels, there’s likely to be significant trading activity on the listing day, and the market will be closely watching how the stock performs.

About Manba Finance Ltd.

Manba Finance Ltd. is a non-deposit taking NBFC, primarily involved in financing two-wheeler vehicle purchases. The company has made its name by providing accessible financing options for buyers in a sector that continues to experience strong demand, especially in a country like India where two-wheelers are a popular mode of transport.

The funds raised from the IPO will be utilized to bolster the company’s capital base, allowing it to expand its lending capabilities and explore new growth opportunities. Additionally, part of the funds will be used for general corporate purposes, further strengthening the company’s operational foundation.

Conclusion

The IPO of Manba Finance has set a new benchmark for market interest, with an astonishing subscription of 224.1 times. The overwhelming response across investor categories—NIIs, QIBs, and RIIs—reflects the strong belief in the company’s growth prospects and future performance.

With the grey market already signaling potential listing gains, investors eagerly await the final allotment and listing to see how the stock performs. The IPO’s success is a strong indicator that Manba Finance is well-positioned to make its mark in the competitive NBFC sector.

However, as always, it is important for investors to monitor market trends and company fundamentals before making any long-term investment decisions.