Upcoming IPO

Manba Finance Ltd IPO: What Investors Should Know

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Manba Finance Ltd IPO

Manba Finance is a well-established non-banking financial company (NBFC) based in Mumbai, India. 

Founded in 1996, the company has built a reputation for offering a wide range of financial services, particularly in vehicle financing. 

Over the years, Manba Finance has gained prominence in the sector, focusing on meeting the diverse financial needs of individuals and small businesses.

Manba Finance's IPO Overview

  • 100% book building IPO of 1,25,70,000 shares priced between Rs 114-120 per equity share.
  • 50% allocated to Qualified Institutional Buyers (QIBs), and 5% to mutual funds.
  • 15% available for non-institutional bidders, and 35% for retail investors.
  • The issue opens on September 23, 2024, and closes on September 25, 2024.
  • Shares listed on BSE and NSE.
  • Face value is Rs 10 with prices ranging from 11.40 to 12.00 times.
  • Book running lead managers: Hem Securities.

Manba Finance Profile

  • Non-Banking Financial Company-Base Layer (NBFC-BL) offers financial solutions for various vehicles.

  • AUM size of over Rs 90,000 lakh as of March 31, 2024.

  • 97.90% of the loan portfolio comprises New Vehicle Loans.

  • Target customers seeking quick loan sanction and disbursement.

  • Operates out of 66 locations with 29 branches across 6 states.

  • Established relationships with over 1,100 Dealers across 6 states.

  • Recently expanded loan portfolio to Used Car Loans, Small Business Loans, and Personal Loans.

  • A centralized credit team reviews loan applications remotely.

  • Credit decisions are based on customer’s credit data.

  • Comprehensive credit assessment, risk management, and collections framework.

  • Credit decisions are based on internal credit policies, LTV, customer cash flows, CIBIL score, and collateral.

  • Business processes and technologies facilitate sanctioning over 85% of loans on the same day of application.

  • The in-house collection team focuses on monthly installment recovery.

  • The collection management process includes account-level tracking, query resolution, and legal action initiation.

Pros and Strengths

Strong Dealer Network

  • It commenced operations in 1998 as a NBFC in Mumbai, Maharashtra.

  • Scaled operations to vehicle financing in 2009.

  • Strong relationships with over 1,100 Dealers, including over 190 EV Dealers across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.

  • The dealer network acts as a point of sale in the business model.

Scalability

  • Scaled operations from 2009 to now in 66 locations across six Indian states.
  • Initially focused on Maharashtra, expanded to Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.
  • Prioritizes market dynamics, competition, and dealer networks before location establishment.
  • Utilizes Vahan and FADA portals for population and market size data analysis.
  • Establishes systems for local opportunity identification, customer selection, loan approval, and collection monitoring.

Cost-Effective long-term Borrowing

  • Secures funding from diversified sources including public and private sector banks, small finance banks, and PTC.
  • Develop long-term relationships with banks, NBFCs, and other financial institutions.
  • Borrows funds from these sources and lends them to customers for asset acquisition or funding needs.
  • Uses various financial structures and issues financial instruments for cost-effective borrowing.
  • Utilizes financial instruments like NCDs and PTC for optimal financial management and controls.
    Co-lending arrangement with Muthoot Capital Services Limited on an 80:20 fund-sharing basis.

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Future Outlook

Manba Finance has positioned itself as a trusted name in vehicle financing and personal loans. 

As the Indian economy continues to grow and demand for financial products increases, the company is well-placed to expand its services, particularly in the semi-urban and rural segments. 

With plans to leverage digital platforms, Manba Finance is likely to enhance its offerings and improve customer experience further.

Disclaimer: The information provided on nsestock.com is for general informational purposes only and does not guarantee the accuracy, completeness, or reliability of any information on this website. The content on nsestock.com may include links to third-party websites for additional information or resources. These links are provided for convenience only, and nsestock.com does not endorse or guarantee the accuracy of the information on these third-party websites.

OYO Rooms and Its Upcoming IPO: Key Details

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Oyo Rooms

OYO, also known as OYO Rooms, is a global hospitality brand that originated in India. Founded in 2013 by Ritesh Agarwal, OYO has rapidly grown into one of the largest networks of hotels, homes, and spaces. 

The company offers affordable accommodations to travelers and has expanded across several continents, including Asia, Europe, and North America. 

OYO’s mission is to provide quality living spaces for all, ensuring consistency and affordability for tourists and business travelers.

Initially launched as a budget hotel aggregator, OYO quickly moved beyond providing hotel rooms. 

Today, it offers many properties, including vacation homes, guesthouses, and co-living spaces, making it a key player in the global hospitality industry. 

The company operates through franchising and leasing, ensuring consistent service standards across its vast portfolio.

Oyo Rooms

OYO's Upcoming IPO: Key Details

OYO’s much-anticipated Initial Public Offering (IPO) has attracted significant attention because it is one of India’s largest tech-driven hospitality platforms. 

The IPO is expected to be a major event in the Indian stock market in 2024, with investors closely watching how the company positions itself for future growth amidst a challenging business environment.

Size of the IPO

OYO plans to raise ₹8,430 crores ($1 billion) through its IPO. The funds are expected to be divided into two parts:

1.    Fresh Issue: A portion of the IPO will be a fresh issue of equity shares, where OYO aims to raise approximately ₹7,000 crores. The fresh capital will be primarily utilized for debt repayment, technology upgrades, and future expansion into international markets.

2.    Offer for Sale (OFS): The remaining amount, roughly ₹1,430 crores, will be from an Offer for Sale, where existing shareholders, including early investors, will sell their stakes. Major stakeholders, such as SoftBank and Sequoia Capital, might sell part of their holdings during the IPO to realize profits on their early investments.

IPO Pricing and Valuation

  • Price Band: The IPO price band is expected to be set between ₹400 and ₹450 per share, but this could be adjusted closer to the launch depending on market conditions. OYO’s final valuation post-IPO is projected to be between $9 billion and $10 billion.
  • Share Dilution: The offering is likely to result in a dilution of 10-15% of the company’s shares. This move could impact the ownership structure, with early investors like SoftBank, Sequoia Capital, and Ritesh Agarwal (OYO’s founder) seeing changes in their stake percentages.

IPO Timeline

OYO’s IPO is expected to be launched before the end of 2024. The company is currently finalizing regulatory clearances with the Securities and Exchange Board of India (SEBI). 

Once approved, the public offering will hit the Indian stock exchanges—National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Financial Overview

OYO’s financial journey has been marked by rapid expansion, followed by periods of financial stress. Here is a summary of its key financials leading up to its IPO:

  • Revenue: In the fiscal year 2023, OYO reported revenue of approximately ₹5,700 crores ($700 million), showing a recovery from the pandemic-driven downturn, but still far from pre-pandemic highs.
  • Losses: The company reported a net loss of ₹1,500 crores ($190 million) in the same fiscal year. While this reflects an improvement compared to earlier losses, achieving profitability remains a key challenge for the company.
  • Operating Metrics: OYO claims to have significantly improved its occupancy rates, especially in markets like India, Southeast Asia, and Europe. It attributes this improvement to better property management systems and technology.
  • Valuation: As of 2024, OYO is valued at around $9-10 billion, down from a peak valuation of $12 billion during its aggressive expansion phase. This decline is attributed to the pandemic and market corrections.
  • IPO Plans: OYO plans to raise around $1 billion through its upcoming IPO. The proceeds will primarily be used for debt repayment, expansion into new markets, and strengthening its technology infrastructure.

Anchor Investors

OYO’s IPO has garnered interest from several prominent institutional investors, including sovereign wealth funds, private equity firms, and global mutual funds. 

These investors are expected to take up significant portions of the IPO during the anchor investor allotment phase, which typically happens a day before the issue opens to the public.

Road to IPO: A Bumpy Journey

OYO first filed for its IPO in October 2021, but due to the COVID-19 pandemic and volatile market conditions, the company postponed the offering multiple times. 

Since then, OYO has worked to restructure its business, focusing on cutting operational costs, improving profitability, and reducing cash burn.

The company also underwent scrutiny from regulatory bodies such as SEBI, which requested more financial transparency and clarification on its revenue model. 

OYO has since revised its draft red herring prospectus (DRHP) multiple times to provide more detailed disclosures about its business, including key risk factors.

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Conclusion

OYO’s upcoming IPO presents a unique opportunity for investors to buy into a well-known brand with significant global reach. 

However, with concerns over its financial losses, competition, and market challenges, the IPO also carries some risks. 

The success of the offering will largely depend on investor sentiment, the pricing of the shares, and how OYO continues to manage its operational and financial risks in the competitive global hospitality industry.

Disclaimer: The information provided on nsestock.com is for general informational purposes only and does not guarantee the accuracy, completeness, or reliability of any information on this website. The content on nsestock.com may include links to third-party websites for additional information or resources. These links are provided for convenience only, and nsestock.com does not endorse or guarantee the accuracy of the information on these third-party websites.

(COTFAB) United Cotfab Limited (IPO Details)

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COTFAB United cotfab Limited

COTFAB (United Cotfab Limited) is a textile company located in Taluka, Ahmedabad-382405, Gujarat India, specializing in the manufacturing and export of a wide range of fabrics. 

United Cotfab operates as a manufacturer and trader in the textile sector. The variety of textile items manufactured has expanded throughout time. 

The company has built a reputation for producing high-quality textile products and caters to both domestic and international markets. 

COTFAB

IPO Details: COTFAB (United Cotfab Limited)

Date (IPO) : 13th – 19th Jun 2024

Listing date: 24 Jun 2024

Type: SME

Face Value: ₹10 per share

Price range: 70 – 70

Listing: BSE

Minimum order quantity (Lot Size): 2000

The IPO price for United Cotfab is ₹70/share. An application requires a minimum lot size of 2000 shares. Retail investors need to invest at least ₹140,000. HNIs can invest as little as ₹280,000 in two lots (4,000 shares).

Company Details: COTFAB (United Cotfab Limited)

Incorporated in 2015

Industry: Textile Manufacturing

 

Products: Cotton Open End Yarn. The firm provides a wide variety of textiles, including cotton, polyester, blends, and other textile items. They are well-known for their high-quality, long-lasting products with unique designs.

Market Presence: Cotfab has a significant presence in both the domestic and international textile sectors. They export their products to several nations, utilizing a comprehensive distribution network.

Quality Assurance: The firm prioritizes quality control and uses cutting-edge technology and machinery in its production operations to guarantee that high standards are met.

Purpose of IPO: COTFAB (United Cotfab Limited)

Expansion: Proceeds from the IPO will be used to expand manufacturing capacities and enter new markets.

Debt Reduction: Part of the funds may be utilized to reduce existing debts, strengthening the company’s financial health.

R&D: Investment in research and development to innovate and improve product offerings.

Investor Interest: Given the company’s strong market position and growth potential, there is considerable interest from both retail and institutional investors.

United Cotfab IPO Promoter Holding

The company’s Promoters are Mr. Nirmalkumar Mangalchand Mittal and Mr. Gagan Nirmalkumar Mittal.

Share Holding Pre Issue   100.00%

 

Share Holding Post Issue 69.84%

Financial Snapshot

Financial Year Ended

March 2021

March 2022

March 2023

March 2024

Total Assets

10.71

155.99

536.77

816.84

Revenue

–

0.18

6.40

1,155.27

Profit After Tax

(-0.01)

0.16

1.39

86.66

EPS

(0.00)

0.02

0.14

7.97

*All figures except EPS are in ₹ Crores

To Know more about the company visit Website: https://www.unitedcotfab.com/

 

To apply for an IPO: https://zerodha.com/ipo/380821/united-cotfab

Disclaimer: The information provided on nsestock.com is for general informational purposes only and does not guarantee the accuracy, completeness, or reliability of any information on this website. The content on nsestock.com may include links to third-party websites for additional information or resources. These links are provided for convenience only, and nsestock.com does not endorse or guarantee the accuracy of the information on these third-party websites.

IPO

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