VMPL

Mumbai (Mahaarshtra) [India], September 23: Manba Finance Limited (NSE: MANBA | BSE: 544242), a diversified, multi-product NBFC, today announced that its Board of Directors has approved raising 99.99 crore through a preferential issue of securities. The issue will be made under the Companies Act, 2013 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations,2018. It is subject to shareholder approval and any other regulatory approvals required.

The issue comprises equity shares worth 67.50 crore to non-promoter investors and convertible warrants worth 32.49 crore to the promoter group.

The round has drawn strong participation from a diverse set of marquee investors and family offices, including family offices of well-known Indian business groups, investment funds and high-net-worth individuals. Their participation reflects growing confidence in Manba's business model, its execution track record and the long-term opportunity in retail lending.

The promoter group, through Manba Investments and Securities Private Limited and Mr. Manish K. Shah, will subscribe to warrants worth 32.49 crore. This is the largest single commitment in the round and reflects the promoters' confidence in Manba's long-term prospects.

Use of proceeds

The proceeds will strengthen the company's capital base and fund growth in its loan book across two-wheeler, three-wheeler, electric vehicle, used car, personal loan, small business loan and Micro-LAP products. They will also support expansion into new geographies and general corporate purposes. A stronger balance sheet gives Manba room to grow its assets under management diversify its borrowing base, and work towards improved credit ratings and lower funding costs.

Management commentary: 

Mr. Manish K. Shah, Managing Director, Manba Finance Limited, said: "This fundraise is a strong endorsement of Manba's business model, our underwriting discipline and the franchise we have built over more than a decade. Having investors of this calibre alongside us, together with the promoter group's own commitment, gives us the capital and the confidence to grow faster, go deeper into our existing markets and serve many more customer who are underserved by formal credit."

About Manba Finance Limited

Manba Finance Limited (NSE: MANBA | BSE: 544242) is one of India's established vehicle-financing NBFCs, founded in 1996 and listed on the NSE and BSE. The Company offers a suite of retail lending products including new and used two-wheeler loans, three-wheeler and electric vehicle loans, used car loans, small business loans and personal loans, with a loan book that is over 90% secured. 

Manba serves customers across urban, semi-urban and rural markets through a network of 130+ locations across six states - Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh and Chhattisgarh - and partnerships with over 1,500 dealers, with assets under management of over 1,700 crore. The Company recently announced its entry into South India through a strategic partnership with Sreesastha (Nammaloan), beginning with Karnataka and Tamil Nadu. 

Underpinning the business is a technology-led customer experience - a lending platform designed to deliver in-principle approvals in as little as one minute and a fully digital, paperless journey from application to disbursal. Manba combines this platform with a long-standing dealer network and prudent credit practices to expand access to organised vehicle finance across India. For more information, visit www.manbafinance.com.

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