Usha Financial Services IPO opens for public subscription on Oct 24

Usha Financial Services Ltd. (PLL) is a non-banking finance company (“NBFC”) that was established in 1995 and has been registered by the Reserve Bank of India as an NBFC-ICC (Investment & Credit)—base layer—non-systemically important non-deposit-taking NBFC with more than nine years of lending experience. It offers lending options to MSMEs, individuals, and other NBFCs and corporations, with a focus on female entrepreneurs. Its services also include financing for electric vehicles (EVs). It provides MSMEs, NBFCs, body corporates, and individuals with a broad range of financial products.

Using an IPO, Usha Financial Services is trying to raise Rs 98.45 crore

Usha Financial Services Ltd., a non-banking finance company (NBFC), launched its initial public offering (IPO) on Thursday. The company intends to raise Rs 98.45 crore from the market by issuing 58.6 lakh shares. The deadline for Usha Financial Services’ initial public offering (IPO) subscription is October 28.

IPO price range, allocation date, and book-running lead managers for financial services

The price range for Usha Financial Services’ initial public offering is between Rs 160 and Rs 168 per share. A minimum lot size of 800 shares, or an investment of Rs 1.34 lakh, is available for bids from retail investors. For eligible institutional purchasers, the NBFC has reserved up to 50% of the net issue size. Furthermore, retail individual investors have been granted up to 35% of the net issue, with the remaining 15% designated for non-institutional investors.

On October 29, the allocation of IPO shares for Usha Financial Services is anticipated to be finalized. Non-allottees will get their refunds on October 30, and shares belonging to successful bidders will be credited to their Demat accounts. The shares of Usha Financial Services are expected to go public on Emerge, the NSE’s SME platform, on October 31. The NSE SME issue’s book-running lead managers are Unistone Capital Pvt. and Narnolia Financial Services Ltd. The registrar for the NBFC’s IPO is Skyline Financial Services Pvt. The market maker for the issue is SS Corporate Securities Ltd.

Financial Status of Usha Financial Services

During the quarter that concluded in June of the current fiscal year, Usha Financial Services reported revenue of Rs 26.81 crore and profit after tax (PAT) of Rs 5.04 crore.

Revenue for the fiscal year 2024 was Rs 63.96 crore, up more than 38% year over year (YoY) from FY 2023’s Rs 46.18 crore. In FY24, the company’s PAT increased 32% year over year to Rs 13.44 crore from Rs 10.16 crore in the previous fiscal year.

Usha Financial Services’ IPO Objective

The following are the things the company plans to do with the net proceeds: Expand the company’s general business objectives and capital base.

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.