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The highly anticipated initial public offering (IPO) of Manba Finance, a non-banking financial company (NBFC), is set to open for subscription tomorrow, September 23, 2024, and will remain available until September 25, 2024. As excitement builds, the shares are currently trading with a grey market premium (GMP) of ₹60, reflecting strong market sentiment and investor interest.
Understanding the Grey Market Premium (GMP)
With an upper price band set at ₹120, the GMP indicates a significant premium of 50% above the IPO price. This robust demand in the grey market suggests that investors are optimistic about the company’s future performance.
IPO Structure and Allocation
The Manba Finance IPO consists entirely of a fresh issue, comprising 1.25 crore equity shares, with no offer-for-sale component. The allocation is structured as follows:
Qualified Institutional Buyers (QIBs): 50%
Retail Investors: 35%
Non-Institutional Investors (NIIs): 15%
This balanced allocation reflects the company’s commitment to attracting a diverse investor base, which can enhance market stability post-listing.
Company Overview: Manba Finance
Founded in 1998, Manba Finance specializes in providing a variety of financial solutions, including financing for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans, and personal loans. The company has shown impressive growth, with revenue increasing by 44% and profit after tax (PAT) soaring by 90% in the last fiscal year.
Why Invest in Manba Finance?
Strong Growth Trajectory: With substantial increases in revenue and profit, Manba Finance is positioned for continued growth in the booming Indian finance sector.
Diverse Product Portfolio: The company’s focus on a range of financial products caters to various customer needs, enhancing its market appeal.
Market Sentiment: The current GMP reflects a positive outlook among investors, indicating confidence in the company’s prospects.
Conclusion
The Manba Finance IPO is generating considerable buzz, with strong demand reflected in its grey market premium. As the subscription period approaches, investors should consider the company’s growth potential and diversified offerings. Remember to conduct thorough research and evaluate your investment strategy before participating in the IPO.
