Usha Financial Services IPO: Usha Financial Services Ltd., a non-banking financial company (NBFC), launched its SME Initial Public Offering (IPO) today, October 24, 2024. Investors can subscribe until October 28, 2024, as the company aims to raise ₹98.45 crore through the public issue. With shares set to list on the NSE SME platform, the IPO has generated significant buzz in the market, especially regarding the Grey Market Premium (GMP) and price band.
Usha Financial Services IPO Details
IPO Size and Structure: Usha Financial Services’ IPO consists entirely of a fresh issue of 58.6 lakh shares, aiming to raise ₹98.45 crore. The price band has been set between ₹160 and ₹168 per share.
Lot Size: The minimum lot size for retail investors is 800 shares, which equates to an investment of ₹1.34 lakh at the upper price band. The allocation for retail investors is 35%, with 50% reserved for Qualified Institutional Buyers (QIB) and 15% for Non-Institutional Investors (NII).
GMP Today: As of October 24, 2024, the Grey Market Premium (GMP) for Usha Financial Services IPO stands at ₹45, indicating a potential listing price of ₹213 per share—around 27% above the upper price band. This suggests strong demand and positive sentiment among investors.
Business Overview: Usha Financial Services, established in 1995, is an RBI-registered NBFC-ICC, providing lending solutions to NBFCs, MSMEs, and individuals, with a special focus on women entrepreneurs and electric vehicle financing. The company’s dual business model of retail and wholesale lending has helped it achieve significant growth. In FY24, Usha Financial Services posted a revenue of ₹63.96 crore, up 38% year-on-year, with a profit after tax (PAT) of ₹13.44 crore.
Use of IPO Proceeds: The funds raised from the IPO will be used to strengthen Usha Financial Services’ capital base and for general corporate purposes, aligning with the company’s vision to become a market leader in customer-centric lending.
Financial Performance:
Q1 FY24 Revenue: ₹26.81 crore
Q1 FY24 PAT: ₹5.04 crore
FY24 Revenue: ₹63.96 crore (YoY growth: 38%)
FY24 PAT: ₹13.44 crore (YoY growth: 32%)
Listing Details and Allotment:
IPO Subscription Dates: October 24 – October 28, 2024
Allotment Date: October 29, 2024
Demat Credit and Refunds: October 30, 2024
Listing Date: October 31, 2024 on NSE SME platform.
With strong GMP and financials, the Usha Financial Services IPO is garnering attention from investors looking for solid growth prospects in the NBFC sector.
Disclaimer: This news article is for informational purposes only. Please consult a financial professional before making investment decisions.
