Manba Finance IPO Listing: Grey Market Indicates Positive Listing, Upto 41% Gains Likely

Manba Finance IPO listing is scheduled for tomorrow, Monday, September 30, 2024. The IPO allotment was finalized on Thursday, September 26, 2024. For those who have been allocated shares, the shares will be credited to their demat accounts on Friday, September 27. Additionally, the refund process for those who did not receive shares will also be completed on Friday, September 27. Here’s what you need to know about the Manba Finance IPO listing tomorrow.

Manba Finance IPO Listing Tomorrow

On the final day of subscription, Wednesday, September 25, Manba Finance IPO received a strong 215.88 times the number of subscriptions, according to BSE data. The qualified institutional buyer (QIB) segment was oversubscribed 148.55 times, while the non-institutional investor quota saw 506.16 times subscriptions. The retail individual investor (RII) quota was oversubscribed 129.95 times. The IPO, which opened on Monday, September 23, had a price band set between INR 114 – 120 per share.

In the Manba Finance IPO, 15% of the shares are allocated for non-institutional investors (NII), 35% are designated for retail investors, and 50% are reserved for qualified institutional buyers (QIB).

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Manba Finance IPO GMP

Investors are also considering the market opportunity and the unique premium of Vehicle finance player company about to enter the market. Consequently, there is a significant grey market premium (GMP), offering a profit potential. Let’s examine what the GMP for Manba Finance IPO has indicated in the last few days ahead of its listing.

Over the past eight days (20 – 28 Sept), the average grey market premium (GMP) for Manba Finance IPO was INR 50 per share, with today’s GMP being at INR 50 per share, according to IPOCentral’s GMP tracker. Accordingly, the anticipated listing price for Manba Finance IPO is pegged at INR 170 per share. This figure represents a potential profit of 41.7% from the IPO price of INR 120 per share, factoring in the upper limit of the IPO pricing range and the current premium observed in the grey market.

The term “Grey market premium” signifies the willingness of investors to pay a price higher than the initial offering price. While trading in this parallel market is not recognized by stock exchanges, the grey market has worked reasonably well to anticipate listing prices. Most recently, shares of Bajaj Housing Finance and Arkade Developers had strong starts on their stock market debuts, as indicated by the grey market.

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Manba Finance IPO Details

Manba Finance IPO subscription commenced on September 23, 2024, and concluded on September 25, 2024. The company aims to raise INR 150.84 crores through a fresh equity sale, with shares priced between INR 114 and INR 120 each, and a minimum bid of 125 shares per lot, with a minimum application amount of INR 15,000.

The company focuses on providing loans primarily to customers in tier 2 and tier 3 cities, as well as rural areas, targeting individuals who have limited access to credit facilities. Initially established to finance two-wheelers, Manba Finance has diversified its offerings to include loans for three-wheelers, electric vehicles, used cars, and small businesses, thereby expanding its market presence across several Indian states including Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.

As of 31 December 2023, the company has an AUM size of over INR 800 crore. Approximately 99% of its loan portfolio consists of new vehicle loans, with an average ticket size of around INR 0.80 lakhs. As of 31 January 2024, the company had 1,315 full-time employees.

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Manba Finance IPO Listing FAQs