Manba Finance IPO / GMP reached Rs 58, investors were disappointed on this company's IPO

Manba Finance IPO: The IPO of non-banking financial company Manba Finance opened for investors on Monday, 23 September and closed successfully on Wednesday, 25 September. The IPO received an overwhelming response from investors, making it 223.12 times subscribed. The company is going to raise a total of Rs 150.84 crore through this IPO, which will be used for the future capital needs and general operations of the company.

IPO price range and share issue

Manba Finance had fixed the price range per share under this IPO at Rs 114 to Rs 120. The company will issue 1,25,70,000 new shares under this IPO. However, this does not include OFS (Offer for Sale), that is, all new shares have been introduced in the market. The last day saw a strong response from investors, resulting in the IPO garnering more subscription than expected.

Listing will be done on 30th September

After the closure of the IPO, now the shares will be allotted to the investors soon. The shares will be allotted on 26th September and the shares will be credited to the demat accounts of the investors on 27th September. After this, on 30th September, the shares of the company will be listed on both the major exchanges of the Indian stock market, BSE and NSE.

Strong demand in the gray market, jump in GMP price

The effect of enthusiasm among investors is also being seen in the gray market. On September 25, the shares of Manba Finance were trading at a premium of Rs 58 in the gray market, which is about 48.33 percent more than the issue price. In view of this, it is being speculated that the GMP price of Manba Finance shares may increase even more at the time of listing, which may give the company a strong start in the market.

Investor response

This IPO received tremendous support across all investor categories, especially from retail investors and QIBs (Qualified Institutional Buyers). The major reason for this is the company's strong financial performance, wide customer base and its strong position in the NBFC sector.

Company's plan

Manba Finance Limited will use the funds raised from the IPO to meet its future capital requirements, as well as the company plans to meet its general operating expenses. Apart from this, the company aims to expand its business and strengthen its funding position, which will give the company more growth prospects in the coming years.

Conclusion

Manba Finance's IPO remains a big attraction not only for investors but also for the market. The heavy subscription received by the IPO and the rise in its GMP price in the gray market prove that the market has a positive sentiment about the company's prospects. Now all eyes are on the listing on September 30, which will show how impressive its debut in the stock market is.