Manba Finance Eyes Rs 2 Billion Debt Issue to Strengthen Lending Capacity

Manba Finance Limited would issue debt securities of Rs 2 billion as a strategic move to bolster its capital base and enhance lending operations. The proposal would be put up for discussion in the board meeting in accordance with the company's overall growth strategy.

Key transaction details:

The suggested debt securities would be listed on the BSE Debt segment to make it available and liquidable in the markets.

The issue will be in the form of privately placed non-convertible debentures to institutional investors.

Manba Finance has maintained a CARE BBB+ (Positive) credit rating, reflecting moderate risk and sound financial health.

The securities will carry an interest rate of 11.50% per annum, payable every month till maturity in July 2026.

The issues proceeds will be utilized by the company to grow its loan book, particularly the vehicle finance business.

Market impact and outlook:

Manba Finance has been scaling up its loan book aggressively, focusing on low-cost credit solutions for individual customers and small enterprises.

Issuance of debt aligns with the company's plan to diversify sources of financing and optimize capital structure.

Investors are closely watching the board's action since the move will be expected to enhance Manba's market standing and profitability.

Sources: BSE India, SEBI Filings, Moneycontrol.