The Initial Public Offering (IPO) of Non-Banking Finance Company (NBFC) Manba Finance Limited has opened for subscription from today (September 23). Investors will be able to bid till September 25. Through this IPO, the company wants to raise Rs 150.84 crore from the market. The price band of Manba Finance has been fixed from Rs 114 to Rs 120.

What is the company’s plan

Through this issue, Manba Finance wants to raise a total of Rs 150.84 crore which is a fresh issue. The company will issue 12,570,000 fresh shares for this. The existing investors of the company are not selling a single share through Offer for Sale i.e. OFS. This means that the entire amount received from the IPO will go to the balance sheet of the company.

How much money can retail investors invest?

Manba Finance has fixed the price band of the issue at Rs 114 to Rs 120. One lot of 125 shares has been created in this IPO. This means that retail investors will have to bid for at least one lot i.e. 125 shares. If you apply for 1 lot at the upper price band of the IPO of Rs 120, then investors will have to invest at least Rs 15,000 for this. At the same time, retail investors can apply for a maximum of 13 lots i.e. 1625 shares. For this, investors will have to invest Rs 195,000 as per the upper price band.

Reservation is for retail investors

50% of Manba Finance's IPO is reserved for qualified institutional buyers (QIB). Also, 35% is reserved for retail investors. The remaining 15% is reserved for non-institutional investors (NII).

what the company does

Manba Finance Limited, an NBFC company established in the year 1998, provides loans for two wheelers, three wheelers, electric two wheelers, electric three wheelers, used cars, small businesses as well as individual loans.

What is the grey market premium?

There is a good demand for Manba Finance shares in the grey market. On Monday at 11 am, the price quoted for one share of this company was Rs 180. Even if the upper price band of the IPO i.e. Rs 120 is considered, a premium of Rs 60 is being quoted on each share. This means that investors are earning 50 percent on their investment on the very first day.