IPO Details

Bidding Dates

24 Oct '24 - 28 Oct '24

Minimum Investment

₹1,34,000 / 1 Lot (800 Shares)

Price Range

₹160 - ₹168

Maximum Investment

₹1,34,000 / 1 Lot (800 Shares)

Retail Discount

To be announced

Issue Size

₹98.45 Cr

Investor category and sub category

Retail Individual Investors (RII)  |   Non-institutional Investors (NII)  |   Qualified Institutional Buyers (QIB)  |   Eligible employees  |  

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

Oct 24, 2024

Closing Date

Oct 28, 2024

Basis of Allotment

Oct 29, 2024

Initiation of Refunds

Oct 30, 2024

Listing Date

Oct 31, 2024

About Usha Financial Services IPO

Usha Financial Services Limited is launching an IPO with a total issue size of ₹98.45 crores, comprising a fresh issue of 58.6 lakh shares. The IPO will be open for subscription from October 24, 2024, to October 28, 2024. Investors can apply within a price band of ₹160 to ₹168 per share. The minimum lot size is 800 shares, requiring a retail investment of at least ₹1,34,400.

High Net Worth Individuals (HNIs) must apply for at least two lots (1,600 shares), with a minimum investment of ₹2,68,800. The IPO will be listed on NSE SME, with a tentative listing date set for October 31, 2024. Narnolia Financial Services Ltd and Unistone Capital Pvt Ltd are the book-running lead managers, while Skyline Financial Services Pvt Ltd is the registrar. Ss Corporate Securities will act as the market maker for this IPO.

Industry Outlook:

  1. As of August 2024, India's NBFC sector achieved a 25.8% year-on-year growth, demonstrating resilience amid global uncertainties, driven by digital innovations and financial inclusion.
  2. The NBFC sector is projected to grow at a CAGR of 13-15% over the next few years, with assets under management increasing by 13-14% in FY 2023.

Usha Financial Services IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. To Augment the capital base of the company.
  2. To meet out the General Corporate Purposes.
  3. To meet out the Issue Expenses.

About Usha Financial Services Limited

Incorporated in May 1995, Usha Financial Services Limited is a non-banking finance company offering lending solutions to NBFCs, corporates, MSMEs, and individuals, with a focus on women entrepreneurs. The company also specialises in Electric Vehicle (EV) financing and provides a diverse range of financial products. As of September 30, 2024, Usha Financial Services has an Assets Under Management (AUM) of ₹30,695.76 lakhs and a Net Worth of ₹10,602.63 lakhs, maintaining a strong CRAR of 33.03% and a Debt-to-Equity ratio of 1.71.

The company operates through two key business models: Retail Lending and Wholesale Lending, with a product portfolio that includes loans to other NBFCs, corporates, and green financing. With long-term relationships with 4 banks and 15 NBFCs, Usha Financial Services leverages strategic partnerships to drive its retail lending business. The company’s experienced management, robust customer due diligence, and a dedicated team of 43 employees are key strengths.

Peer Details

The only listed company considered by Aztec Fluids & Machinery as its peers is IBL Finance Ltd.

How to Check the Allotment Status of the Usha Financial Services IPO?

Steps to check IPO allotment status on Angel One’s app:

  1. Log in to the Angel One app
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. Angel One will notify you of your IPO allotment status via push notification and email.

How to apply for Usha Financial Services IPO online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the Usha Financial Services IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Usha Financial Services IPO

  • Registered office: 330, Mezanine Floor Functional Industrial Estate, Patparganj, Delhi- 110092, India
  • Phone: 011 47019079
  • E-mail: compliance@ushafinancial.com

IPO Financials

Particulars For the period ended September 31, 2024 Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from operation (in ₹ lakh ) 2,651.14 6322.20 4563.17 2502.62
Profit After Tax (PAT) (in ₹ lakh) 504.16 1344.95 1016.55 414.42
AUM (in ₹ lakh) 31,817.70 30,695.76 35,768.94 15,162.86
Net Worth (in ₹ lakh) 11,106.79 10,602.63 8,207.38 4,767.58
Return on Total Assets (%) 2.93% 3.80% 3.79% 2.95%
Return on Equity (%) 9.29% 14.30% 15.67% 9.20%
Return on Capital Employed (RoCE) (%) 12.02% 15.40% 14.88% 12.71%
Earning Per Share (EPS)-in absolute ₹ 3.18 8.64 7.42 3.51

Know before investing

Strengths

6

  1. Experienced management team with over 25 years of industry experience.

  2. Strong AUM of ₹30,695.76 lakhs and Net Worth of ₹10,602.63 lakhs.

  3. Strategic agreements with 13 business partners across 19 states.

  4. Robust underwriting process with comprehensive risk management policies.

  5. CRAR of 33.03% and Debt-to-Equity Ratio of 1.71.

  6. Established partnerships with 4 banks and 15 NBFCs for financing.

Risks

6

  1. High dependency on capital; borrowings total ₹18,861.94 lakhs.

  2. NPAs increased to ₹1,260.97 lakhs as of September 2024.

  3. Top 2 states contribute 39.06% of total revenue.

  4. Portfolio management fees constitute 9.66% of revenue from operations.

  5. Dependent on top 10 customers for 40.12% of revenue.

  6. Contingent liability of ₹58.88 lakhs pending with the Income Tax Department.

  • How to Apply in IPO
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Usha Financial Services IPO FAQs

What is the Usha Financial Services IPO?

Usha Financial Services’s IPO is a book-built IPO. It will be open from October 24, 2024, to October 28, 2024.

When will Usha Financial Services IPO be allotted?

The Basis of Allotment will happen on Wednesday, October 29, 2024.

When will Usha Financial Services IPO open for subscription?

The IPO subscription window will open on October 24, 2024.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 800 shares.

When will Usha Financial Services Limited list on exchanges?

The listing date for Usha Financial Services is Friday, October 31, 2024.

What would be the listing gains on the Usha Financial Services IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to increase your chances of getting a Usha Financial Services IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for Usha Financial Services IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Usha Financial Services Limited using one PAN?

You can submit only one application using your PAN card.

How to read Usha Financial Services Limited's financial statements?

To read Usha Financial Services’ financial statements, download the IPO’s  RHP document.