Usha Financial Services Limited, a non-banking finance company (NBFC) registered with the Reserve Bank of India, has officially launched its Initial Public Offering (IPO) today, targeting a total of ₹98.44 crores. The IPO comprises a fresh issue of 58.60 lakh shares with a subscription period open from October 24 to October 28, 2024. Allotment is expected to be finalized on or around October 29, 2024, with the shares scheduled to list on the NSE SME platform by October 31, 2024.

The share price band for the Usha Financial Services IPO has been set between ₹160 and ₹168 per equity share. At the upper end of this price band, the market capitalization of Usha Financial Services is projected to be ₹365.19 crores. The lot size for this IPO is 800 shares, meaning retail investors need a minimum investment of ₹1,34,400, while High-Net-Worth Individuals (HNIs) must invest at least ₹2,68,800 by applying for 2 lots (1,600 shares).

The IPO is being managed by UNISTONE CAPITAL PRIVATE LIMITED and NARNOLIA FINANCIAL SERVICES LIMITED as the book-running lead managers, while SKYLINE FINANCIAL SERVICES PRIVATE LIMITED serves as the registrar for the issue. Additionally, SS Corporate Securities Limited will act as the Market Maker for the Usha Financial Services IPO.

Usha Financial Services Limited IPO Grey Market Premium (GMP)

As of today, the Grey Market Premium (GMP) for the Usha Financial Services IPO stands at ₹0, which is reflective of cautious market sentiment surrounding the company’s financial performance. It's essential to note that trading in the grey market is unregulated, and the GMP should not be solely relied upon for investment decisions, as it can fluctuate based on demand and supply dynamics.

Usha Financial Services Limited IPO Live Subscription Status Today

As of 6:23 PM on October 24, 2024, the Usha Financial Services IPO has been subscribed 1.24 times on its first day of the subscription period. Investors can check the live subscription status on the NSE website.

Usha Financial Services IPO Anchor Investors Report

Usha Financial Services has successfully raised ₹27.90 crores from anchor investors at the IPO price of ₹168 per share, allocating 16,60,800 equity shares to these investors. Shares allotted to anchor investors are drawn from the Qualified Institutional Buyers (QIBs) reservation portion.

Usha Financial Services Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online

The allotment date for the Usha Financial Services IPO is set for October 29, 2024. To check your allotment status, follow these steps:

• Navigate to the IPO allotment status page.
• Select Usha Financial Services Limited IPO from the dropdown list of IPOs.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to view your allotment status.

This quick guide allows investors to easily verify their allotment status and proceed with their investment plans.

Objectives of Usha Financial Services Limited IPO

The funds raised from the fresh issue will be allocated towards:

1. ₹7,000 lakhs to augment the capital base of the company.
2. General corporate purposes.
3. Meeting issue expenses.

Usha Financial Services IPO Review

Usha Financial Services has been operating for over 9 years, focusing on providing lending solutions to various sectors, including MSMEs and corporates, with a particular emphasis on supporting women entrepreneurs. They have also ventured into financing for Electric Vehicles (EVs), thereby diversifying their financial product offerings.

The company's management team, led by promoters Mr. Rajesh Gupta, Mr. Anoop Garg, and Ms. Geeta Goswami, possesses over 13 years of experience in the financial market and metal recycling.

For the period ending September 30, 2024, Usha Financial Services reported revenues from operations of ₹2,681.26 lakhs, and for the fiscal years 2024, 2023, and 2022, revenues were ₹6,396.05 lakhs, ₹4,618.73 lakhs, and ₹2,531.36 lakhs, respectively. The company's EBITDA for the same period was ₹1,773.94 lakhs, with profits after tax reported at ₹504.16 lakhs.

For this IPO, the company has set a pre-issue Earnings Per Share (EPS) of ₹8.64 and a post-issue EPS of ₹6.18. The pre-issue P/E ratio stands at 19.44x, while the post-issue P/E ratio is 27.18x, compared to an industry average of 45.47x. The Return on Capital Employed (ROCE) for FY24 is 15.40%, and the Return on Equity (RoE) is 14.30%, suggesting that the IPO is fairly priced.

However, the Grey Market Premium indicating no potential listing gains signals a cautious outlook. Given the company’s current financial performance and valuation, we recommend risk-averse investors to reconsider participating in the Usha Financial Services Limited IPO for potential listing gains or long-term investments.

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