Usha Financial Services Shares List At Over 2% Discount On NSE SME

Shares of Usha Financial Services Ltd. made a tepid market debut on Thursday. The stock listed at Rs 164 on the NSE, indicating a discount of 2.3% over the IPO's upper price band of Rs 168 per share.

Investors who were allotted one single lot of 800 shares in the Usha Financial Services IPO would have incurred a loss of Rs 3,200 over their investment of Rs 1,34,400.

Shares of Usha Financial Services gained 1.83% from the opening level to touch an intraday high of Rs 167 on NSE.

Ahead of the listing, Usha Financial Services GMP hinted at a premium of Rs 9, or 5.36%. According to InvestorGain, the projected listing price of the initial public offering of Usha Financial Services was coming at Rs 177 apiece. However, the stock listed lower than the GMP indication.

Notably, the grey market price is not an official price quote for the stock and is based on speculation.

The initial share sale opened for subscription on Oct. 24 and closed on Oct. 28. 

The Usha Financial Services IPO received a decent response from investors, with non-institutional investors leading the demand. 

The IPO was subscribed 19.37 times over the bidding period. It was booked 28.55 times in the non-institutional investors category. Retail investors subscribed their portion by 20.76 times, while qualified institutional buyers subscribed their quota by 10.04 times.

The Rs 98.45-crore public offer of Usha Financial Services was an entirely fresh issue of 58.6 lakh shares. 

Usha Financial Services IPO price band was fixed at Rs 160 to Rs 168 per share. 

Share allotment for bidders was finalised on Oct. 29. Skyline Financial Services Pvt.

Usha Financial Services Ltd. plans to use the net proceeds from the IPO to augment its capital base. Further, a portion of the money will be used for general corporate purposes, as per its red herring prospectus.

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