Should you subscribe Manba Finance IPO: Check GMP, price band, details

The initial public offering (IPO) of Manba Finance IPO opened for bidding on Monday, looking to raise a sum of Rs 150.84 crore.
Manba Finance Limited, founded in 1998, offers a variety of financial services, including loans for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, along with small business and personal loans.
The IPO is fresh issue of 1.26 crore shares and closes for subscription on September 25, 2024.
The price range for Manba Finance’s IPO has been set between Rs 114 and Rs 120 per share. Investors are required to apply for a minimum of 125 shares. For retail investors, the minimum investment amount is Rs 15,000.
An IPO report from Anan Rathi said that Manba Finance Bank Ltd has established relationships with more than 1100 dealers with the ability to expand to new underpenetrated geographies (currently present in 66 locations spread across six states in western, central and north India) and a Technology drive and scalable operating model with quick Turn Around Time (TAT) for loan processing (5.30 days as of March 31, 2024).
“At the upper price band company is valuing at P/BV of 1.70x with a market cap of Rs 6,028 million post issue of equity shares and return
on net worth of 15.66%. We believe that the IPO is fairly priced, hence we recommend a ‘Subscribe-Long Term’ rating to the IPO,” said the report.
The last grey market premium (GMP) for Manba Finance’s IPO stands at Rs 60, as of the latest update on September 23, 2024, at 10:32 AM.
Given the IPO’s price band of Rs 120, the estimated listing price is Rs 180 (calculated as the cap price plus the current GMP). This suggests a projected gain of 50% per share.
The allotment for the Manba Finance IPO is anticipated to be finalised on Thursday, September 26, 2024. The company’s IPO is set to be listed on both the BSE and NSE, with the tentative listing date scheduled for Monday, September 30, 2024.