Nisus Finance Services Co Limited, a leading firm engaged in Transaction Advisory services, is making waves in the IPO market with its upcoming Initial Public Offering (IPO). The IPO, which opened on December 4, 2024, and will close on December 6, 2024, has garnered significant attention from retail and high-net-worth investors alike. With a price band set between ₹170 and ₹180 per equity share, Nisus Finance aims to raise ₹114.23 crores through the offering, which includes both a fresh issue of ₹101.62 crores and an offer for sale worth ₹12.61 crores.

Nisus Finance Services Co IPO Subscription and Market Details

The IPO's subscription period is crucial for understanding its market demand and investor interest. As of December 6, 2024, the subscription status indicates that the IPO has been subscribed 25.91 times, showing strong investor interest in the offering. Retail investors are required to invest a minimum of ₹1,44,000 for 800 shares, while high-net-worth individuals (HNIs) are expected to invest a minimum of ₹2,88,000 for 1,600 shares. The shares are expected to be listed on the BSE SME with a tentative listing date of December 11, 2024.

This IPO is being managed by BEELINE CAPITAL ADVISORS PRIVATE LIMITED as the book-running lead manager, while SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the registrar for the issue. Spread X Securities Private Limited serves as the market maker. The lot size for this IPO is 800 shares, and the market capitalization at an issue price of ₹180 per share will be ₹429.80 crores, reflecting the company's potential growth in the sector.

Grey Market Premium and Expected Listing Gains

The Grey Market Premium (GMP) plays an essential role in predicting the potential listing gains of an IPO. For Nisus Finance Services Co, the current GMP stands at ₹40, which indicates a potential 22.41% listing gain based on the financial performance and market interest in the offering. However, it's important to note that GMP is an unofficial market indicator, and real trading prices can only be determined once the shares are listed on the exchange. Investors should approach GMP trends with caution, as they reflect only unregulated market speculation and not official prices.

Nisus Finance Services Co's Financial Overview and Key Metrics

Nisus Finance Services Co is expected to show strong growth potential. The company's Revenue from Operations for FY 2024 stands at ₹1,500.53 lakhs, with an EBITDA of ₹1,206.58 lakhs and Profit After Tax (PAT) of ₹835.72 lakhs for the three months ended June 30, 2024. These strong figures reflect the company's ability to generate profitable returns.

For the IPO, the company is offering a pre-issue EPS of ₹12.25 and a post-issue EPS of ₹9.58, with a pre-issue P/E ratio of 14.69x and a post-issue P/E ratio of 18.79x. These figures suggest that the IPO is fairly priced, considering the company’s performance and the potential growth it offers to investors.

Objectives of the Nisus Finance Services Co IPO

The funds raised from the Fresh Issue of the IPO will be utilized for specific purposes aimed at fueling growth and expansion. The objectives include:

1. Augmenting the fund setup and infrastructure in key international markets like IFSC-Gift City (Gandhinagar), DIFC-Dubai, and FSC-Mauritius with an investment of ₹1,246.45 lakhs.
2. Fundraising costs and placement fees, amounting to ₹3,590.58 lakhs, to enhance the company’s fund creation and distribution network across India and international markets.
3. A capital infusion into its subsidiary, Nisus Fincorp Private Limited, for strengthening its capital base with an investment of ₹2,500.00 lakhs.

Additionally, a portion of the funds will be utilized for general corporate purposes to support operational activities.

Investment Recommendation

Given the strong financial performance, promoter expertise, and IPO metrics, Nisus Finance Services Co Limited presents an attractive opportunity for investors seeking to benefit from its potential listing gains. The Grey Market Premium (GMP), along with the company's strong fundamentals, indicates that the IPO could be a profitable investment. Investors are encouraged to apply for the IPO considering its fair valuation and future growth prospects.