Manba Finance IPO was listed with a premium of 21% or Rs 145 a piece on the National Stock Exchange while Bajaj Finance was listed at Rs 150, a premium of 114% on the NSE and BSE. The housing finance company’s stock fell to Rs 140 intra-day on the day it listed slipping below the opening price recuperating losses and gaiing10% from its opening price to close at Rs 165. 

Bajaj Housing Finance saw some profit bookings on the very first day of the listing, September 16, 2024. However, Manba Finance was locked in the upper circuit on the first day of listing, rising as much as Rs 152.25 and remained in the upper circuit till the closing.

Bajaj Housing Finance IPO Details

The company raised a total of Rs 6,560 crore through fresh capital and offer for sale. The company received bids worth Rs 3.23 lakh crore, the highest ever in India’s primary market any IPO got. The IPO opened on September 09 and closed on September 11. It had a robust ROA/ROE of 2.4%/15.2% in FY24 with a net profit of 76% over FY20-24, according to the DRHP filed with SEBI. 

“Bajaj Housing Finance benefits from the distinguished heritage of the “Bajaj” brand, which enjoys widespread recognition as a reliable retail brand. It has a strong risk management framework which helps it to maintain stable asset quality,” said the brokerage house Motilal Oswal in an IPO note.

Manba Finance IPO Details

The non-banking finance company offering financial solutions for new two-wheelers, used cars, small business loans, and many other things opened its IPO on September 23. It was closed for bidding on September 25.  The company raised Rs 150.84 crore via the sale of 1.26 crore fresh shares. The company’s IPO price band ranged between Rs 114 to Rs 120 per equity share. 

Manba Finance reported a net profit of Rs 31.42 crore in FY24, which is an increase of 90% increase compared to Rs 16.58 crore posted a year ago. The company’s revenue stood at Rs 973 crore in FY24, a jump of 44% from Rs 787 crore Manba posted in FY23. 

Bajaj Housing Finance Vs Manba Finance – Key risks in business model

Bajaj Housing Finance

  • Macro-economic factors and adverse regulatory changes as well as customer-specific factors, may cause an increase in the level of GNPAs/Stage 3 Assets and have a material adverse impact on the quality of the loan portfolio. 
  • Assets Under Management are concentrated in four states and any adverse developments in these regions could have an adverse effect on the business.

Manba Finance

  • New vehicle loans constitute 97.90% of Manba Finance’s assets under management. Lack of diversity in the loan products may affect its growth prospects and financial conditions.
  • Any downgrade in the company’s credit ratings could increase its borrowing costs and affect its ability to obtain financing, which will result negatively in the operations and financial conditions.