Manba Finance IPO: What Unbelievable GMP Surge Says Ahead of Subscription on Monday?

The Rs 151 crore initial public offering (IPO) of Mumbai-based non-banking financial company (NBFC) Manba Finance is set to open for public subscription on Monday, September 23. The three-day subscription period will close on September 25.

As the company gears up for its public listing, market enthusiasts are keeping a close eye on the grey market premium (GMP) of Manba Finance IPO. The GMP indicates the demand of the IPO shares in the unofficial market and helps in making an informed decision about subscribing to the public issue.

grey market data suggests that Manba Finance IPO has been commanding a premium of around Rs 35-40 in the unofficial market, indicating a strong demand for the public issue. This could be seen as a positive sign, as it may signal that the listing could be in the range of Rs 90-95.

The Rs 151 crore IPO of Manba Finance IPO consists of a fresh issue of Rs 120 crores and an offer for sale of up to Rs 31 crore by four existing shareholders. The company has set a price band of Rs 54-59 per share, with a lot size of 200 shares. This means that investors can bid for a minimum of 200 shares of Manba Finance IPO, equivalent to Rs 10,800-Rs 11,800 at the lower and upper end of the price band, respectively.

The Manba Finance IPO is being led by Hem Securities as the sole book running lead manager (BRLM). The company will utilise the funds raised through the IPO to augment its capital base and to meet future capital requirements. The funds will also be used for general corporate purposes, including meeting the working capital requirements of the company.

Founded in 1986, Manba Finance is a Mumbai-based non-banking financial company (NBFC) that offers a range of financial services, including microfinance, loans against gold jewellery, and credit to small businesses. The company operates through a network of 42 branches across seven states in India. In the year ended March 31, 2024, the company reported a revenue of Rs 99.5 crores and a profit of Rs 7.3 crore.