Manba Finance Limited

As per financial performance, Manba Finance Limited has posted total income / net profits of Rs 106.62 Cr / Rs 9.74 Cr (FY22), Rs 133.32 Cr / 16.58 Cr (FY23) and Rs 191.63 Cr / Rs 31.42 Cr (FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 6.07 and average RoNW of 12.18% for last three fiscals. Issue is priced at a P/BV of 2.25 as per NAV of Rs 53.26/- as on 31.03.24. If we attribute latest earnings of FY22, FY23, and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 61.90, 36.36 and 19.19 respectively, which looks fully priced. As per RHP, comparison between listed peers is given in above table. On BRLM's front, one lead manager is associated with this IPO, and have handled around 14 IPOs (SMEs & Main Board) in last three fiscals. Hem Securities Limited: This is 55th IPO from this BRLM. From last 10 SME IPOs, all opened above issue price or at par on the day of listing. As of now, from last 10 IPOs, one is trading below issue price and remaining are trading above issue price or at par. (As on 19.09.24) As per financials, Manba Finance Limited has shown good results, RoNW is 15.66% and P/E is respectively 61.90, 36.36 and 19.19 as per FY22, FY23, and FY24 earnings. So, issue looks fully priced. Company is a NBFC providing new 2W / 3W / EV2W / EV3W, used cars, small business and personal loans, which is highly competitive and fragmented business segmented. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Manish Kiritkumar Shah
• 2 Nikita Manish Shah
• 3 Monil Manish Shah
• 4 Manba Investments and Securities Private Limited
• 5 Avalon Advisory and Consultant Services Private Limited
• 6 Manba Fincorp Private Limited
• 7 Manba Infotech LLP
• 8 Manish Kiritkumar Shah (HUF)