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MUMBAI — Manba Finance Limited (NSE: MANBA | BSE: 544242), a multi-product non-banking financial company (NBFC), is moving ahead with a ₹99.99 crore preferential issue after its board approved the proposal on September 23. The round brings together marquee family offices, investment funds, high-net-worth individuals and promoter entities, with proceeds planned for the expansion of the lender's retail loan book. The allotment remains subject to shareholder approval and other regulatory clearances. (Updated May 9, 2026.)
The preferential issue, drawn up under the Companies Act, 2013, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, has two components. Non-promoter investors are set to receive equity shares worth ₹67.50 crore, while the promoter group — acting through Manba Investments and Securities Private Limited and Managing Director Manish K. Shah — will subscribe to convertible warrants worth ₹32.49 crore.
Warrants work differently from direct equity purchases. They give the holder the right to buy shares later at a fixed price, which allows the promoter group to register its commitment now while deferring the full payout. The setup also ties the promoters' financial upside to the company's share price over time.
Because the issue is a preferential allotment to identified investors, it requires shareholder approval before shares can be issued. Additional regulatory conditions under Indian securities law may also apply. Preferential issues remain a common route for Indian companies to raise capital quickly without a public offering, and under SEBI rules the pricing is tied to a formula based on recent market levels.
The equity tranche drew interest from a broad set of investors, including family offices of well-known Indian business groups, investment funds and high-net-worth individuals. These are typically patient, sophisticated investors, and their participation is widely read as a mark of confidence in Manba's underwriting and the long-term demand for organised retail credit in India.
For international readers: "crore" is a unit in the South Asian numbering system equal to ten million. The ₹99.99 crore raise therefore works out to ₹999.9 million, or roughly $12 million at current exchange rates.
The ₹32.49 crore warrant subscription is the largest single commitment in the round. Company insiders, who have the most visibility into the business, are effectively writing the biggest cheque. That is a stronger signal than a purely external fundraising round, and it suggests the founding family sees substantial headroom for growth.
Manba plans to direct the money toward:
A thicker capital base gives the company more room to grow assets under management, diversify its borrowing sources and push for better credit ratings. Lower funding costs would then feed directly into lending margins, which is a key advantage for an NBFC of Manba's scale.
"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," said Manish K. Shah, Managing Director. He added that having marquee investors alongside the promoter group "gives us the capital and the confidence to grow faster, go deeper into our existing markets and serve many more customers who are underserved by formal credit."
Manba was founded in 1996 and is listed on both the NSE and BSE. The company focuses on vehicle and retail lending, with a loan book that is more than 90% secured — a conservative profile that cushions against credit losses. It runs more than 130 locations across Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh and Chhattisgarh, backed by over 1,500 dealer relationships. Assets under management exceed ₹1,700 crore.
Manba recently signed a strategic partnership with Sreesastha, which operates the Nammaloan brand, to enter Karnataka and Tamil Nadu. That marks the company's first significant push into southern India and broadens its reach beyond the six states it currently serves. The fresh capital should help fund that rollout, including dealer onboarding and technology integration.
Speed is central to the company's lending model. Manba's platform can deliver in-principle approvals in as little as one minute and supports a fully digital, paperless journey from application to disbursal. In a market where loan turnaround time often decides the winner, that capability complements its dealer network and disciplined credit practices.
Indian NBFCs are raising capital at a steady clip, but investors are becoming more selective, favouring lenders with strong secured-asset profiles and clear technology strategies. Manba's book, dominated by secured vehicle and retail loans, fits that preference. India's organised retail lending has expanded steadily in recent years, yet a large share of borrowers in smaller towns still depends on informal sources; lenders like Manba are positioned to capture that shift.
The involvement of family offices is another notable element. Unlike momentum-driven institutional funds, family offices tend to hold through economic cycles, suggesting a multi-year view on India's vehicle-finance segment — a market that large banks have historically under-served.
The competitive picture is not easy. Banks have been aggressive in vehicle finance, and pricing pressure in used-car and two-wheeler lending is real. Interest-rate cycles and tighter credit norms can also slow loan growth. In newer segments such as EV finance, questions around battery residual value and resale markets remain unresolved.
Manba's answer has been conservative credit practices and a tech-led cost structure. Whether that discipline holds as the balance sheet expands — and as the lender moves into new states — will be visible in the coming quarters.
The preferential issue still needs shareholder approval and other regulatory consents before allotment. Once in place, the capital gives Manba room to accelerate loan growth and fund its South India entry. Just as important, the round sends a clear signal: the people running the company, and the investors backing them, believe the opportunity is still early.
The development was disclosed by the company in a press release.
