Usha Financial Services IPO GMP Indicates Shares Could List At 27% Premium

The initial public offering (IPO) of Usha Financial Services Ltd. has been creating a strong buzz in the unlisted market. The grey market premium (GMP) on the Usha Financial Services IPO, set to open on Oct 24., stood at Rs 45 as of 6 a.m. on Oct. 23.

The GMP indicated listing at a premium of 26.79% for the shares of the non-banking finance company (NBFC). As per InvestorGain, the stock is likely to list at Rs 213 as against the upper price band of Rs 168.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

The Usha Financial IPO will be open for subscription between Oct. 24 and Oct. 28. Share allotment of the issue is likely to be finalised on Oct. 29.

Usha Financial Services shares are likely to list on the NSE SME platform Emerge on Oct. 31.

Usha Financial Services IPO price band has been fixed at Rs 160 to Rs 168 apiece. Retail investors can apply for at least 800 shares in a single lot, taking the minimum investment value to Rs 1,34,400 for each application.

The public offer is an entirely fresh issue of 58.6 lakh shares worth Rs 98.45 crore.

Skyline Financial Services Pvt. is the registrar for the offer, while Narnolia Financial Services Ltd. and Unistone Capital Pvt Ltd. are the book-running lead managers of the IPO. SS Corporate Securities Ltd. is acting as the market maker of the issue.

Use of Proceeds

Usha Financial Services in its red herring prospectus said that it will use the proceeds from the IPO to augment the capital base of the company. The rest of the proceeds will be used for general corporate purposes.

About Usha Financial Services Ltd.

Usha Financial Services Ltd. is registered with the Reserve Bank of India (RBI) as an NBFC-ICC (Non-Banking Financial Company - Investment and Credit Company). Incorporated in 1995, the company provides lending solutions to NBFCs, corporations, MSMEs and individuals, especially women entrepreneurs.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.