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The shares of Manba Finance will debut at the bourses on Monday. Ahead of the listing, the company's shares were trading with a GMP of Rs 38 in the grey market.Considering the upper price band of Rs 120, the stock is expected to list at a premium of 32% over the issue price.However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.The company intends to use the proceeds from the fresh issuance to augment its capital base and meet future capital requirements.Based in Mumbai, the company provides financial solutions to both salaried and self-employed individuals, offering a quick turnaround time (TAT) for loan sanction and disbursement.In FY24, Manba Finance had one of the highest shares of two-wheeler loans, accounting for 92% of its assets under management (AUM).It is also ranked third in AUM per branch at Rs 14.41 crore, behind companies such as Arman Financial, Baid Finserv, Berar Finance, Hero Fincorp, MAS Financial, Muthoot Fincorp, and TVS Credit. Manba Finance also had the fastest branch growth, with a CAGR of 40.3% from FY 2022 to FY 2024.Its AUM increased from Rs 495.82 crore in FY 2022 to Rs 936.85 crore in FY 2024, reflecting a compound annual growth rate (CAGR) of 37.46%.The company posted a profit of Rs 31.41 crore in FY24, an 89% increase from Rs 16.58 crore in the previous year. Revenue for FY24 grew significantly to Rs 191.58 crore from Rs 133.32 crore in FY23, a rise of 44%, driven primarily by higher interest income.Hem Securities acted as the sole book-running lead manager and Link Intime India was the registrar for the issue.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

As food and grocery delivery company Swiggy gears up to launch one of the most anticipated initial public offerings (IPOs) in recent times, a look into the Updated Draft Red Herring Prospectus (UDRHP) reveals ten important pieces of information regarding the Rs 10,000-crore public issue.Here’s what you need to know:About Swiggy IPOThe public issue of Swiggy will consist of a combination of fresh shares and an offer for sale (OFS). The fresh issue is valued at Rs 3,750 crore, while the OFS comprises up to 1.85 crore shares. Swiggy has called an Extraordinary General Meeting (EGM) to increase this to Rs 5,000 crore or $600 million.About SwiggyThe company started its operations in 2014 as a food delivery service and has since launched multiple services on its platform, including quick commerce in 2020, Dineout in 2022, and a pick-up/drop-off service called Genie in 2020. It also engages in other hyperlocal commerce through Swiggy Minis.Swiggy PromoterAccording to SEBI regulations, there is no identifiable promoter. The company's CEO and Founder, Sriharsha Majety, holds a 6.23% stake, while co-founder Lakshmi Nandan Reddy Obul holds 1.62%. As of the filing date of this UDRHP, the company has 5,232 holders of equity shares and 1,187 holders of Compulsorily Convertible Preference Shares (CCPS).Swiggy Selling ShareholdersThe updated DRHP lists ten corporate selling shareholders, including Accel India IV (Mauritius), Apoletto Asia, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V B.V, Elevation Capital V, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners VIIA-Mauritius, and Tencent Cloud Europe B.V. Individual selling shareholders include Lakshmi Nandan Reddy Obul, P.R. Venketrama Raja, Rahul Jaimini, Samina Hamied, and Sriharsha Majety.Swiggy Lead ManagersThe book-running lead managers (BRLM) for the IPO are Kotak Mahindra Capital Company, Citigroup Global Markets India Private Limited, Jefferies India Private Limited, and Avendus Capital Private Limited, while Link Intime India Private Limited serves as the registrar to the issue.Swiggy IPO's Objectives of OfferThe UDRHP outlines five objectives for the offer. The company plans to allocate up to Rs 137.41 crore for investments in its material subsidiary, Scootsy, aimed at repaying or pre-paying borrowings. An investment of Rs 982.40 crore in Scootsy will focus on expanding its Dark Store network for the Quick Commerce segment and making lease/license payments for these stores. Of the net proceeds from the issue, Rs 586.20 crore will be allocated to technology and cloud infrastructure, and Rs 929.50 crore will go towards brand marketing and business promotion to enhance platform visibility. The company intends to deploy the net proceeds over four fiscal years, from FY2025 to FY2028.Swiggy FinancialsThe company has incurred net losses each year since its incorporation, with negative cash flows from operations. For the financial year ending March 31, Swiggy reported losses of Rs 2,350.24 crore, down from Rs 4,179.30 crore in FY23 and Rs 3,628.89 crore in FY22. Revenue from operations for the same period was Rs 11,247.39 crore, compared to Rs 8,264.59 crore and Rs 5,704.89 crore in the previous years.Swiggy vs. Zomato: Accounting RatiosFor FY24, Swiggy’s revenue from operations was Rs 11,247.39 crore, compared to Rs 12,114 crore for Zomato. Swiggy's EPS on a diluted basis was (Rs 10.70), while Zomato reported Rs 0.41. Swiggy’s NAV per share stands at Rs 35.48, compared to Rs 23.14 for Zomato.Risks to the CompanyFailure to generate adequate revenue growth and manage expenses and cash flows could lead to continued significant losses.Inability to retain existing users or acquire new users cost-effectively may adversely affect business and financial conditions.Attracting and retaining delivery partners is critical; failure to do so could negatively impact business operations.Retaining existing restaurant, merchant, and brand partners, or acquiring new ones, is essential for operational stability.Increased operating costs passed on to users could lead to a decline in order volumes.Effective management of Dark Stores is crucial for the quick commerce business.Pending LitigationsThere are certain legal proceedings involving the company, its subsidiaries, and certain directors pending at various levels before courts, tribunals, and authorities. Adverse rulings may require the company to make payments or provisions for future payments.AttritionThe overall voluntary employee attrition rates for FY24, FY23, and FY22 were 34.56%, 33.14%, and 32.69%, respectively.(Disclaimer: Recommendations, suggestions, views, and opinions expressed by experts are their own and do not represent the views of The Economic Times.)