Maharashtra NBFC Manba Finance Files for IPO to Boost Lending Capacity

15 Mar 2024 , 10:37 AM

Maharashtra-based non-banking finance company (NBFC) Manba Finance has filed papers with the capital markets regulator to raise funds through an initial public offering (IPO).

The offer will solely consist of a fresh issue of 1,25,70,000 shares, with no offer-for-sale component.

Manba is wholly owned by the promoter and promoter group. The largest shareholders include Manish Kiritkumar Shah, his wife Nikita Manish Shah, and Manba Investments & Securities, with stakes of 17.41%, 13.29%, and 36.92%, respectively.

The NBFC, which provides financing for new vehicles, used cars, small businesses, and personal loans, intends to utilize the proceeds to bolster its capital base to meet future lending requirements.

Manba has consistently maintained a minimum capital to risk-weighted assets ratio (CRAR), which stood at 27.02% in the financial year 2022-23 and 26.62% for the six-month period ended September FY24.

The financial solutions provider recorded a 70.2% year-on-year growth in net profit, reaching ₹16.58 Crore in FY23, with net interest income rising by 46.1% to ₹69.5 Crore during the same period. The net interest margin expanded to 12.31% in FY23 from 9.28% in FY22.

Assets under management (AUM) reached ₹633.7 Crore in FY23, reflecting a growth of 27.80% over the previous year but experienced a decline of 6.47% compared to FY21 when it was ₹495.8 Crore.

For the six-month period ending September FY24, the net profit stood at ₹16.8 Crore, with net interest income at ₹38.65 Crore and total income at ₹88.3 Crore. The AUM during this period amounted to ₹733.7 Crore.

Manba Finance competes with listed peers such as Baid Finserv, MAS Financial Services, and Arman Financial Services.