Manba Finance Board Approves ₹99.99 Cr Preferential Issue; Promoter Group to Invest ₹32.49 Cr
Manba Finance Limited's Board approved raising ₹99.99 crore via a preferential issue. This includes ₹67.50 crore from non-promoters and ₹32.49 crore from the promoter group via warrants. Proceeds will strengthen capital, fund loan book growth, and support expansion.
The fundraise of ₹99.99 crore is substantial for Manba Finance and is expected to significantly strengthen its capital base, support loan book growth, and facilitate expansion. This will likely have a material impact on the company's financial health and future prospects.
The announcement details a significant fundraise through a preferential issue, with strong participation from marquee investors and a substantial commitment from the promoter group. The funds are intended to strengthen the company's capital base and fuel growth, which are positive developments.
Manba Finance Limited's Board of Directors has approved a fundraise of ₹99.99 crore through a preferential issue of securities, subject to shareholder and regulatory approvals. The issue comprises equity shares worth ₹67.50 crore for non-promoter investors and convertible warrants worth ₹32.49 crore for the promoter group.
The round has attracted significant participation from marquee investors, family offices of well-known Indian business groups, investment funds, and high-net-worth individuals, reflecting confidence in Manba's business model and the retail lending sector.
The promoter group, including Manba Investments and Securities Private Limited and Mr. Manish K. Shah, will subscribe to warrants worth ₹32.49 crore, marking the largest single commitment in this round.
The proceeds from this issue will be utilized to strengthen the company's capital base, fund growth in its loan book across various products like two-wheeler, three-wheeler, EV, used car, personal, and small business loans. Additionally, the funds will support expansion into new geographies and general corporate purposes. A strengthened balance sheet is expected to enhance Manba's capacity for asset growth, diversify its borrowing base, and work towards improved credit ratings and reduced funding costs.
Mr. Manish K. Shah, Managing Director, stated that this fundraise is a strong endorsement of Manba's business model and underwriting discipline. He expressed confidence that the capital raised, along with the promoter group's commitment, will enable faster growth, deeper market penetration, and serving a larger customer base underserved by formal credit.
Manba Finance Limited, established in 1996, is a diversified NBFC offering retail lending products. It has a loan book over 90% secured and serves customers across urban, semi-urban, and rural markets through a network of 130+ locations across six states. The company also recently expanded into South India through a strategic partnership. Its operations are underpinned by a technology-led customer experience with a digital lending platform.
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Manba Finance Limited filed this with the NSE as a statutory disclosure, categorised under equity fundraising. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Manba Finance Limited. Read the original for the full detail.