Nisus Finance Services Co Limited is primarily engaged in the business of Transaction Advisory services. It has established subsidiaries and associated companies that offer services in Real Estate and Urban Infrastructure Fund and Asset Management. The company has a strong presence in both domestic and international markets, with a focus on financial services in the real estate sector.

The IPO for Nisus Finance Services Co is set to raise ₹114.23 crores, with a fresh issue of ₹101.62 crores and an offer for sale of ₹12.61 crores. The IPO’s subscription period started on December 4, 2024, and will close on December 6, 2024. The allotment date is expected on December 9, 2024, and the listing on BSE SME is tentatively scheduled for December 11, 2024.

IPO Details

• Issue Size: ₹114.23 crores
• Price Band: ₹170 to ₹180 per share
• Market Capitalization at IPO Price: ₹429.80 crores
• Lot Size: 800 shares
• Retail Minimum Investment: ₹1,44,000 for 800 shares
• HNI Minimum Investment: ₹2,88,000 for 1,600 shares

Financial Information

Nisus Finance Services Co's financial performance shows a significant improvement in recent years. For the fiscal year ending June 30, 2024, the company reported:

• Revenue from operations: ₹1,500.53 Lakhs (Q1 FY24), ₹4,224.92 Lakhs (FY23), ₹1,153.83 Lakhs (FY22), ₹749.51 Lakhs (FY21)
• EBITDA: ₹1,206.58 Lakhs (Q1 FY24), ₹3,467.53 Lakhs (FY23), ₹554.16 Lakhs (FY22), ₹267.72 Lakhs (FY21)
• Profit after Tax: ₹835.72 Lakhs (Q1 FY24), ₹2,305.29 Lakhs (FY23), ₹302.02 Lakhs (FY22), ₹129.43 Lakhs (FY21)

These strong figures demonstrate the company’s growth potential and its ability to generate consistent profits.

Grey Market Premium (GMP)

As of December 5, 2024, the Grey Market Premium (GMP) for the Nisus Finance Services Co IPO is ₹40, which represents a 22.41% potential gain over the IPO price. This suggests strong investor sentiment and demand for the company’s shares before their official listing. However, it is important to note that the GMP is based on unregulated market activity, and price discovery cannot be fully relied upon until the official listing on the stock exchange.

Subscription Status

As of 11:04 AM on December 5, 2024, the Nisus Finance Services Co IPO has been subscribed 6.28 times on its second day of the subscription period. This strong subscription indicates significant investor interest in the IPO, particularly from the Qualified Institutional Buyers (QIBs) and High-Net-Worth Individuals (HNIs) segments. Retail investors have also shown a positive response, helping to drive the overall subscription rate up.

Objectives of the IPO

The proceeds from the fresh issue will be utilized towards the following objectives:

1. Augmenting fund setup and additional licenses, with a focus on expanding services in key international markets like Gandhinagar (India), Dubai (UAE), and Mauritius.
2. Fundraising costs including distribution and placement fees to third-party distributors for creating a pool of funds.
3. Investment in subsidiary Nisus Fincorp Private Limited, a registered NBFC, to augment its capital base.
4. General Corporate Purposes.

Company Profile and Business Focus

Nisus Finance Services Co Limited operates in transaction advisory services, with expertise in providing advisory services in real estate and infrastructure sectors. Its subsidiaries handle various aspects of real estate investments, asset management, and urban infrastructure funds, catering to both the domestic and international markets.

With the promoters' combined experience of over 15 years in the capital markets and real estate financing sectors, the company is well-positioned to leverage its expertise to expand further and capitalize on the growing demand for real estate financing.

Valuation and Performance Metrics

For the Nisus Finance Services Co IPO, the company is offering shares at a pre-issue EPS of ₹12.25 and a post-issue EPS of ₹9.58. The pre-issue P/E ratio is 14.69x, while the post-issue P/E ratio is 18.79x. These valuation metrics suggest that the IPO is reasonably priced compared to industry peers.

The company's Return on Capital Employed (ROCE) for FY24 stands at 101.63%, while the Return on Equity (ROE) is an impressive 109.83%. These figures reflect the company's high efficiency and potential for generating strong returns on invested capital.

IPO Recommendation

Based on the company's solid financial performance, robust growth potential, and strong subscription interest, we recommend investors apply for the Nisus Finance Services Co Limited IPO, especially for listing gains. The company’s financial metrics, including high ROE and ROCE, along with a promising GMP, make it an attractive investment opportunity in the real estate and infrastructure advisory space.