The Manba Finance IPO has caught the attention of investors, but the question remains: is the Manba Finance IPO good or bad for long-term investment? Opening to raise ₹150.84 crore, the IPO is a fresh issue of 1.26 crore shares, closing on September 25, 2024. The price range has been set between ₹114 and ₹120 per share, and the latest grey market premium (GMP) suggests a potential gain of up to 50% per share.
Key Details of Manba Finance IPO
| Particulars | Details |
|---|---|
| IPO Opening Date | September 23, 2024 |
| IPO Closing Date | September 25, 2024 |
| Price Band | ₹114 – ₹120 per share |
| IPO Size | ₹150.84 crore |
| Minimum Investment | ₹15,000 (for 125 shares) |
| Market Cap Post Issue | ₹602.8 crore |
| GMP (as of Sep 23, 2024) | ₹60 per share |
| Expected Listing Price | ₹180 per share |
Should You Subscribe?
At the upper price band, Manba Finance is valued at a P/BV of 1.70x with a market cap of ₹602.8 crore post-issue. With a return on net worth of 15.66% and a strong presence in vehicle and personal loans, some analysts are giving the IPO a ‘Subscribe-Long Term’ rating. But before making a decision, consider your own risk tolerance and long-term investment goals.
Financial Overview of Manba Finance
| Financial Metric | FY 2022-23 | FY 2023-24 |
|---|---|---|
| Revenue | ₹250 crore | ₹275 crore |
| Net Profit | ₹50 crore | ₹55 crore |
| Return on Net Worth (RoNW) | 14.8% | 15.66% |
| Loan Book | ₹800 crore | ₹900 crore |
So, is the Manba Finance IPO good or bad? With a positive GMP, stable financials, and promising growth, it appears favorable for long-term investors. However, as always, careful consideration is key.
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