Usha Financial Services Limited IPO is an exciting upcoming IPO, offering a fresh issue of 58.6 lakh shares worth Rs 98.45 crores. This SME IPO opens for subscription on October 24, 2024, and closes on October 28, 2024. The price band is set between ₹160 to ₹168 per share, with retail investors needing a minimum investment of ₹134,400 (800 shares).
High Net-Worth Individuals (HNIs) can invest in 2 lots (1,600 shares) for ₹268,800. The allotment is expected on October 29, 2024, with the listing tentatively on October 31, 2024, on the NSE SME. Narnolia Financial Services Ltd and Unistone Capital Pvt Ltd are the lead managers, making this IPO investment a notable opportunity in the SME space.
The Usha Financial Services Limited IPO is a book-built issue with a fresh offering of shares, set to raise Rs 98.45 crores. With a price band of ₹160 to ₹168 per share, this SME IPO opens for subscription from October 24 to October 28, 2024, and will list on the NSE SME. Below are the key details regarding the IPO.
| Usha Financial Services Limited IPO date | October 24, 2024 to October 28, 2024 |
| Price band | ₹160 to ₹168 per share |
| Face value | ₹10 per share |
| Total issue size | 5,860,000 shares(aggregating up to ₹98.45 Cr) |
| Lot size | 800 Shares |
| Issue type | Book Built Issue IPO |
| Fresh issue | 5,860,000 shares(aggregating up to ₹98.45 Cr) |
| Market maker portion | 320,800 shares |
| Share holding pre issue | 15,877,631 |
| Share holding post issue | 21,737,631 |
| Listing at | NSE SME |
The Usha Financial Services Limited IPO timeline provides key dates for investors interested in this upcoming IPO. From the opening and closing of subscriptions to allotment finalisation and the listing date, these milestones help investors plan their IPO investments effectively. Stay updated with all important dates below.
| IPO open date | October 24, 2024, Thursday |
| IPO close date | October 28, 2024, Monday |
| Basis of allotment | October 29, 2024, Tuesday |
| Initiation of refunds | October 30, 2024, Wednesday |
| Credit of shares to demat | October 30, 2024, Wednesday |
| Listing date | October 31, 2024, Thursday |
| Cut-off time for UPI mandate confirmation | October 28, 2024, by 5 PM |
Incorporated in May 1995, Usha Financial Services Limited is a non-banking finance company (NBFC) offering lending solutions to NBFCs, corporates, MSMEs, and individuals, with a particular focus on women entrepreneurs. It also provides electric vehicle (EV) financing and has a diverse financial product portfolio.
With an AUM of Rs 30,695.76 Lakhs and a Net worth of Rs 10,602.63 Lakhs, Usha Financial Services Limited maintains a CRAR of 33.03% and a D/E ratio of 1.71. The company operates through two key business models: Retail Lending and Wholesale Lending. Its strategic partnerships and strong customer due diligence make it a solid contender in the SME sector. As of October 2024, the company employed 43 staff members.
The Usha Financial Services Limited IPO presents a strong financial profile with a capitalisation of Rs 365.19 crore. As of June 30, 2024, the company's key performance indicators (KPI) highlight solid returns, including a Return on Equity (ROE) of 9.29% and a Return on Capital Employed (ROCE) of 12.02%.
The debt-to-equity ratio stands at 1.7, while the Return on Net Worth (RoNW) matches the ROE at 9.29%. Usha Financial's Price-to-Book Value (P/BV) ratio is 24. The company's Earnings Per Share (EPS) pre-IPO is Rs 8.47, increasing to Rs 9.28 post-IPO, with a Price-to-Earnings (P/E) ratio decreasing from 19.83x to 18.11x.
| Period ended | June 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 2,681.26 | 6,396.05 | 4,618.73 | 2,531.36 |
| Assets | 35,133.66 | 33,585.81 | 37,222.64 | 16,428.07 |
| Net worth | 11,106.79 | 10,602.63 | 8,207.38 | 4,767.58 |
| Profit after tax | 504.16 | 1,344.95 | 1,016.55 | 414.42 |
| Total borrowing | 18,861.94 | 18,128.22 | 24,751.41 | 9,723.22 |
| Reserves and surplus | 9,519.03 | 9,014.87 | 7,265.57 | 4,109.41 |
| Amount in ₹ lakhs | ||||
Usha Financial Services Limited benefits from an experienced management team and strategic agreements with NBFCs and other entities, enhancing its operational efficiency. The company has robust customer due diligence procedures, ensuring a strong risk management framework. Additionally, its diversified product portfolio helps spread risk across different segments.
Despite its strengths, the company faces challenges due to its moderately small size compared to larger NBFCs. Usha Financial Services also faces concentration risk in certain lending segments, which could affect its overall financial performance in specific market conditions.
Considering the Usha Financial Services Limited IPO, potential investors should note the latest Usha Financial Services Limited IPO GMP of ₹50 as of October 22, 2024. With a price band of ₹168, the estimated listing price for the SME IPO is ₹218, resulting in an expected percentage gain of 29.76%.
This positive outlook, combined with the company's experienced management team and diversified product portfolio, makes the IPO a compelling investment opportunity. However, investors should also consider the risks that come with the company's smaller size compared to larger NBFCs and concentration risk in certain lending segments. Overall, a careful review of these factors can help guide your investment decision in Usha Financial Services Limited's IPO.
The Usha Financial Services Limited IPO SME is offering 5,860,000 equity shares with a face value of ₹10, aiming to raise a total of ₹98.45 crores. The shares are priced between ₹160 and ₹168 each, with a minimum order lot of 800 shares.
The IPO will be open for subscription from October 24, 2024, to October 28, 2024. Skyline Financial Services Private Ltd will serve as the registrar for this IPO, and the shares are to be recorded on the NSE SME platform.
The Usha Financial Services IPO will open for subscription on October 24, 2024, and will close on October 28, 2024.
The lot size for the Usha Financial Services IPO is 800 shares, with the lowest investment amount required of ₹134,400.
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