Usha Financial Services IPO Fully Subscribed On Day 1; Check GMP

Usha Financial Services Ltd., a non-banking finance company (NBFC), launched its initial public offering (IPO) on Thursday. The company aims to raise Rs 98.45 crore from the market through a fresh issue of 58.6 lakh shares. The subscription window for Usha Financial Services IPO will remain open till Oct. 28.

Investors interested in applying for Usha Financial Services IPO should check out these key details:

The Usha Financial Services IPO price band has been set at Rs 160 to Rs 168 per share. Retail investors can place bids for a minimum lot size of 800 shares, totalling an investment of Rs 1.34 lakh.

The NBFC has set aside up to 50% of the net issue size for qualified institutional buyers. Additionally, up to 35% of the net issue has been reserved for retail individual investors and the remaining 15% is set aside for non-institutional investors.

Usha Financial Services IPO share allotment status is set to be finalised on Oct. 29. Credit of shares to the Demat account of successful bidders will be done on Oct. 30 along with refunds for non-allottees.

Shares of Usha Financial Services are set to list on the NSE SME platform, Emerge, on Oct 31.

The book-running lead managers for the NSE SME issue are Narnolia Financial Services Ltd. and Unistone Capital Pvt. The registrar for the NBFC’s public issue is Skyline Financial Services Pvt.

SS Corporate Securities Ltd. is the market maker for the issue.

The IPO of Usha Financial Services was subscribed 1.36 times on Thursday

• Qualified Institutions: 1.07 times

• Non-Institutional Investors: 2.02 times

• Retail Investors: 1.25 times

The grey market premium (GMP) on the Usha Financial Services IPO was Rs 51 as of 06:31 p.m. on Oct. 24. As per InvestorGain, the GMP trend indicates an estimated listing at Rs 219 per share (Rs 168 + Rs 51). This marks a premium of 30.36% over 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.

Usha Financial Services Ltd was incorporated in 1995. The company is registered with the Reserve Bank of India (RBI) as an NBFC-ICC (Non-Banking Financial Company - Investment and Credit Company). It provides lending solutions to other NBFCs, corporations, MSMEs and individuals, according to its Red Herring Prospectus.

The company employs both retail lending and wholesale lending business models to generate revenue.

Use Of Proceeds

The company will use the proceeds of the public issue to augment its capital base and other general corporate purposes.

Financials

Usha Financial Services posted a revenue of Rs 26.81 crore for the quarter that ended in June of the current financial year, while its profit after tax(PAT) stood at Rs 5.04 crore.

In fiscal year 2024, the revenue was recorded at Rs 63.96 crore, indicating an increase of over 38% year-on-year (YoY) from Rs 46.18 crore in FY 2023. The company’s PAT climbed 32% YoY to Rs 13.44 crore in FY24 from Rs 10.16 crore in the preceding fiscal.

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.