Usha Financial Services IPO: All You Need to Know

The SME IPO of Usha Financial Services, one of the upcoming IPOs, opens for subscription on October 24, 2024, and will close on October 28. The company aims to raise ₹98 crore through this IPO, and the shares will be listed on the NSE SME platform. 

Here’s a simplified breakdown of key details

IPO Size: Usha Financial Services plans to raise ₹98 crore by selling 58.6 lakh fresh equity shares.

Price Range: The shares are priced between ₹160-168 each. Investors can buy in lots of 800 shares.

Grey Market Premium (GMP): The company’s shares are trading at a ₹45 premium in the unlisted market, about 27% above the issue price.

About the Company: Usha Financial Services, a non-banking finance company (NBFC), was founded in 1995. Registered with the RBI as an NBFC-ICC, it has over 9 years of lending experience, offering financial services to other NBFCs, corporates, MSMEs, and individuals, especially women entrepreneurs.

Industry Overview: The Indian NBFC sector was valued at $326 billion in 2023 and is projected to grow at a compound annual rate of 13-15% from 2023 to 2025.

Financial Performance: As of September 2024, Usha Financial Services reported a total revenue of ₹26.51 crore and a net profit of ₹5.04 crore.

Use of Funds: The money raised will be used to strengthen the company’s capital base and for general business purposes.

Key Managers: Narnolia Financial Services is managing the issue, and Skyline Financial is the registrar.

Allocation: 50% of the IPO allotment is reserved for institutional investors, 35% for retail investors, and 15% for non-institutional investors.

Important Dates: The IPO runs from October 24 to October 28. The IPO allotment is expected on October 29, with the listing likely on October 31.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.