Manba Finance Limited IPO Review
Neutral120-120 · Mainboard
✦
Analyst Verdict
Manba Finance Limited IPO
Neutral
IPO at a Glance
Price Band
120-120
Issue Size
151cr
Min. Investment
₹15,000
Opens
2024-09-21
Closes
2024-09-23
Listing
2024-09-28
Category
Mainboard
Key Strengths
✓Ability to expand to new underpenetrated geographies. It has scaled up its operations from 2009 with vehicle financing and is now present in 66 locations spread across six states in western, central, and north India.
✓The company’s technology-driven and scalable operating model is helping it and its customers with a quick Turn Around Time (TAT) for loan processing.
✓The company’s extensive collection infrastructure and processes are leading them to a well-maintained asset quality.
✓The company has access to diversified and cost-effective long-term borrowing. Its diversified sources include term loans and cash credit facilities from PSU banks, private sector banks, small finance banks, & other financial institutions, and PTC and the issuance of privately placed listed and unlisted NCDs to meet its capital requirements.
✓It has established strong relationships with more than 1,100 dealers, including more than 190 EV dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.
Key Risks
⚠Business and future prospects might be adversely impacted if maintaining relationships with dealers, from whom a significant part of the New Vehicle Loans business is derived, becomes challenging.
⚠New Vehicle Loans account for 97.90% of AUM. A lack of product diversity in loan offers might harm the company’s growth, prospects, and financial standing.
⚠Any downgrade in credit ratings could lead to higher borrowing costs, hinder financing acquisition, and negatively affect the business, operational results, and financial health.
⚠Potential asset-liability mismatches could impact liquidity and subsequently have a negative impact on operations and profitability.
⚠Negative cash flows from operating activities were recorded in Fiscals 2024 and 2023, and if this trend continues, it could adversely affect cash flow needs, thus hampering the ability to operate the business, implement growth plans, and undermine financial health.
⚠Participation in markets that are competitive and have ever-changing customer needs, means that failing to compete effectively with already established companies and new market participants, could result in a negative effect on the business.
Frequently Asked Questions
Should I apply for Manba Finance Limited IPO?
Based on our analysis, our rating for Manba Finance Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Manba Finance Limited IPO?
Business and future prospects might be adversely impacted if maintaining relationships with dealers, from whom a significant part of the New Vehicle Loans business is derived, becomes challenging. New Vehicle Loans account for 97.90% of AUM. A lack of product diversity in loan offers might harm the company’s growth, prospects, and financial standing. Any downgrade in credit ratings could lead to h
What are the strengths of Manba Finance Limited IPO?
Ability to expand to new underpenetrated geographies. It has scaled up its operations from 2009 with vehicle financing and is now present in 66 locations spread across six states in western, central, and north India. The company’s technology-driven and scalable operating model is helping it and its customers with a quick Turn Around Time (TAT) for loan processing. The company’s extensive collectio
What is the price band of Manba Finance Limited IPO?
The price band for Manba Finance Limited IPO is 120-120. The IPO has closed.
Full Analysis Available
Financials, DRHP breakdown, peer comparison, shareholding pattern & more