Manba Finance Limited IPO review - Apply or avoid? Expected Listing Gains? | Vibhor Varshney #ipo

Summary

The script discusses the upcoming IPO of a non-banking finance company, Manova Finance. It highlights the company's focus on retail finance for mid-class customers, targeting loans for electric three-wheelers, used cars, and small businesses. The speaker analyzes the IPO details, including the issue price, lot size, and subscription dates, emphasizing the company's growth potential and financial performance. They also discuss the risks, such as high non-performing assets, and provide advice on applying for the IPO, suggesting the possibility of over-subscription.

Takeaways

• 😀 The script is a financial analysis of an upcoming IPO named 'Manba', which is a non-banking finance company focusing on providing loans.
• 💼 Manba Finance is targeting the retail segment, specifically middle-class customers, with a major focus on two-wheeler loans, including electric vehicles, used cars, and small business loans.
• 📈 The company has shown aggressive growth in loan disbursal, with assets under management increasing from 560 crores to 970 crores.
• 📊 The financials show a revenue jump from 100 crores to 190 crores in two years, with profits after tax also doubling during the same period.
• 📉 The script discusses the company's non-performing assets (NPAs) and how they have been managed, showing a stable and slightly decreasing trend.
• 💹 The IPO is entirely a fresh issue, with no offer for sale component, meaning all the funds raised will go directly to the company.
• 📅 The IPO is scheduled to open on 23rd September and close on 25th September, with the listing expected on 30th September.
• 💰 The price band for the IPO is set at ₹10, with a face value of ₹10 per share, and the company is aiming to raise 50 crores through the IPO.
• 🏢 The company's operations are primarily focused in North and West India, with a significant presence in states like Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh.
• 📝 The script also mentions the importance of using platforms like 'IPO Extra' for comprehensive IPO information and updates.

Q & A

What does 'मनबा लागे' mean in the context of the script?

In the context of the script, 'मनबा लागे' seems to be a phrase used to grab attention or indicate the introduction of a new topic, possibly related to a company named 'Manba' that is coming with an IPO.

What is the primary concern for investors regarding finance companies' IPOs according to the script?

The primary concern for investors regarding finance companies' IPOs, as mentioned in the script, is understanding how much the company will raise through the IPO, how much money they will give out, and how much they will not return.

What is the significance of the term 'एनपीए' in the script?

The term 'एनपीए' refers to 'Net Profit After Tax' in Hindi, which is a significant financial metric for investors to consider when evaluating a company's IPO.

What does the script suggest about the performance of previous IPOs in the market?

The script suggests that previous IPOs, such as Bajaj Housing Finance, created a buzz in the market, and there was a focus on a few IPOs bundled together, which performed well.

What is the business model of Manba Finance as described in the script?

Manba Finance, as described in the script, is a non-banking finance company that primarily provides loans without accepting deposits. They raise capital through IPOs, bonds, debentures, or at lower rates and then lend at higher rates, keeping the profit margin.

What are the target customers for Manba Finance's loans according to the script?

The script indicates that Manba Finance targets retail customers, specifically middle-class individuals, two-wheeler loans, electric three-wheelers, used cars, small business loans, and personal loans.

What is the script's advice regarding the IPO allotment and listing dates for Manba Finance?

The script advises that the IPO will be available from the 23rd to the 25th, with allotment on the 26th, refunds and share dispatch on the 27th, and listing on the 30th of September.

What is the strategy suggested in the script for applying to the Manba Finance IPO?

The script suggests applying during the IPO dates, focusing on the retail category, and being prepared for oversubscription, which might lead to a listing gain.

What is the script's perspective on the financial health of Manba Finance?

The script provides a detailed analysis of Manba Finance's financial health, highlighting increasing assets, revenue growth, and profit after tax. It also discusses the company's aggressive lending and the stability of its non-performing assets ratio.

What is the script's recommendation for investors considering the Manba Finance IPO?

The script recommends that investors should definitely apply for the Manba Finance IPO, considering the company's growth, financial performance, and the positive aspects highlighted in the analysis.