Manba Finance files draft papers with Sebi to raise funds via IPO

Non-banking Finance Company NBFC Manba Finance Ltd has filed draft papers with capital markets regulator Sebi to garner funds through an Initial Public Offering IPO.The proposed IPO is entirely a fresh issue of up to 1.26 crore shares with no Offer of Sale OFS component, according to the Draft Red Herring Prospectus DRHP.

Non-banking Finance Company (NBFC) Manba Finance Ltd has filed draft papers with capital markets regulator Sebi to garner funds through an Initial Public Offering (IPO).

The proposed IPO is entirely a fresh issue of up to 1.26 crore shares with no Offer of Sale (OFS) component, according to the Draft Red Herring Prospectus (DRHP). At present, promoters hold 100 per cent stake in the Maharashtra-based Manba Finance. Going by the draft papers filed last week, proceeds from the issues will be utilised to augmenting the capital base to meet the company's future capital requirements towards onward lending and for general corporate purposes. Manba Finance provides financial solutions for auto loans, used cars, small business loans, and personal loans. It currently operates across 65 locations in five states -- Maharashtra, Gujarat, Rajasthan, Chhattisgarh, and Madhya Pradesh. Its Assets Under Management (AUM) increased from Rs 530.11 crore in fiscal 2021 to Rs 733.73 crore by the end of the six-month period ended September 30, 2023, with a CAGR of 14 per cent. The NBFC firm clocked a profit of Rs 16.58 crore in the financial year FY23, up 70.22 per cent from Rs 9.74 crore in the previous year. Revenue in FY23 stood at Rs 133.32 crore as compared to Rs 106.59 crore in the previous year, showing an increase of 25 per cent. Hem Securities is the sole lead manager to the issue.

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