Nisus Finance Services Co Limited, a prominent player in Transaction Advisory services, is gearing up for its IPO in 2024. The company, known for its extensive work in real estate financing and capital market advisory, is supported by an experienced management team with more than 15 years of expertise. With multiple subsidiaries and stepdown subsidiaries like Nisus BCD Advisors LLP and Nisus Finance Investment Consultancy FZCO, the company has a strong foothold in sectors like Real Estate Fund Management and Urban Infrastructure Asset Management.

Nisus Finance Services Co IPO Overview

Nisus Finance Services Co IPO is a Book Built Issue amounting to ₹114.23 crores, which includes a fresh issue of 56.45 lakh shares worth ₹101.62 crores and an offer for sale of 7 lakh shares totaling ₹12.61 crores. The price band for the IPO is set at ₹170 to ₹180 per equity share, with a market capitalization of ₹429.80 crores at the upper price band. The lot size for the IPO is 800 shares, and the minimum investment for retail investors is ₹1,44,000 for 1 lot. High-Net-Worth Individuals (HNIs) must apply for at least 2 lots (1,600 shares), amounting to ₹2,88,000.

The IPO subscription period opens on December 4, 2024, and closes on December 6, 2024. The IPO allotment is expected to be finalized on December 9, 2024, and the shares will be listed on the BSE SME on December 11, 2024.

Grey Market Premium (GMP) and Subscription Details

The Grey Market Premium (GMP) of the Nisus Finance Services Co IPO is currently expected to be ₹40, indicating a potential listing gain of 22.41% based on the IPO price of ₹180. However, investors should keep in mind that the Grey Market Premium is not a guaranteed indicator of the official listing price, as it is based on unregulated trading.

As of December 5, 2024, the IPO has been subscribed 14.44 times, with substantial demand across both retail and institutional categories. The IPO’s performance suggests strong investor interest, particularly given the GMP and subscription rate.

Financial Performance and IPO Metrics

Nisus Finance Services Co has demonstrated robust financial performance in recent years. For the first quarter of FY 2024, the company reported revenues of ₹1,500.53 lakhs, with an EBITDA of ₹1,206.58 lakhs and a profit after tax (PAT) of ₹835.72 lakhs. These numbers reflect strong profitability and an improving financial position over the last few years, with a consistent upward trend in both revenue and profit.

The company’s pre-issue EPS stands at ₹12.25, which brings the pre-issue P/E ratio to 14.69x. After the issue, the post-issue EPS drops to ₹9.58, resulting in a post-issue P/E ratio of 18.79x. These figures suggest that the IPO is fairly priced when compared to industry standards and its financial trajectory.

The Upcoming IPOs in this week and coming weeks are Dhanlaxmi Corp, Jungle Camps, Toss The Coin, Purple United, Rosmerta Digital and Avanse Financial.

The Current active IPO is Nisus Finance and Emerald Tyre Manufacturers.

Use of IPO Proceeds

The funds raised from the IPO will be utilized for various strategic initiatives, including:

1. ₹1,246.45 lakhs for augmenting fund setup, licenses, and infrastructure development in key global locations such as IFSC-Gift City (Gandhinagar), DIFC-Dubai (UAE), and FSC-Mauritius.
2. ₹3,590.58 lakhs for costs related to fundraising, distribution, and placement fees to third-party agents and distributors.
3. ₹2,500.00 lakhs for investing in its subsidiary, Nisus Fincorp Private Limited (RBI Registered NBFC), to strengthen its capital base.
4. The remainder will be used for general corporate purposes.

Conclusion and Investment Recommendation

With a strong track record in transaction advisory services and a highly experienced management team, Nisus Finance Services Co offers a promising opportunity for listing gains and long-term growth. The GMP of ₹40, the strong subscription demand, and financial performance indicate a solid potential for investors seeking high returns post-listing.

Given the robust financials, strategic use of IPO proceeds, and positive market outlook, investors looking for growth in the real estate and infrastructure sectors should consider applying for the Nisus Finance Services Co IPO. While there are some risks inherent in any IPO, this offering looks poised for substantial growth potential and may deliver strong returns.

For more insights on upcoming IPOs, subscription details, and the latest market trends, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today.

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