Usha Financial Services Limited
Usha Financial Services Limited(USHAFIN)
Issue Size
₹58,60,000
Issue Price
₹98.45 Cr
Price Band
₹160 – ₹168
Lot Size
800 shares
Min. Investment
₹1,28,000
Max. Investment
₹1,34,400
Open Date
24 Oct, 2024
Close Date
28 Oct, 2024
Allotment
29 Oct, 2024
Listing
31 Oct, 2024
Max. Investment
₹1,34,400
Announced
24 Oct, 2024
Opening Date
24 Oct, 2024
Closing Date
28 Oct, 2024
Basis of Allotment
29 Oct, 2024
Initiation of Refunds
30 Oct, 2024
Credit of Shares
30 Oct, 2024
Listing Date
31 Oct, 2024
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About Usha Financial Services Limited IPO
Incorporated in May 1995, Usha Financial Services Limited is a non-banking finance company providing lending solutions to other NBFCs, corporates, MSMEs, and individuals, particularly women entrepreneurs.
The company also provides services for Electric Vehicle (EV) financing. It offers a diversified range of financial products to individuals, body corporates, NBFCs, and MSMEs.
The company has an AUM of Rs. 30,695.76 Lakhs and a Net worth of Rs. 10,602.63 Lakhs. It maintains a C
Usha Financial Services Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 36.9% increase in shares
Usha Financial Services Limited IPO Financials Health
Usha Financial Services Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| HNI Minimum | 2 | 1600 | ₹2,68,800 |
| Retail Minimum | 1 | 800 | ₹1,34,400 |
| Retail Maximum | 1 | 800 | ₹1,34,400 |
(All values in CR)
Usha Financial Services Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 1.7 |
| EPS Post IPO | 9.28 |
| EPS Pre IPO | 8.47 |
| P/BV | 24 |
| P/E Post IPO | 18.11 |
| P/E Pre IPO | 19.83 |
| ROCE | 12.02% |
| ROE | 9.29% |
| RoNW | 9.29% |
(All values in CR)
Strength & Risk of Usha Financial Services Limited IPO
1. Good track record.
2. Leveraging the experience of our Promoters.
3. Experienced management team and a motivated and efficient work force.
1. The company requires substantial capital for its business and any disruption in the cost and availability of capital, including the company sources of financing, could have an adverse effect on its business, results of operations, financial condition and cash flows.
2. Any deterioration in the credit quality of its loans could adversely affect the company's business, results of operations, financial condition and cash flows.
3. While the company has applied for consent to undertake the Offer from certain of its lenders, the company has not received consents from some of these lenders as on the date of this Draft Red Herring Prospectus. Any failures to obtain these consents could lead to changes in its plans or strategies, including the company capital raising plan through the Offer.
4. The company depends on the accuracy and completeness of information provided by its borrowers. Any misleading information provided to it by the company borrowers may affect its judgement of their credit worthiness, which could have an adverse effect on its business, cash flows, results of operations, financial condition.
5. A major portion of its expenses is incurred in Portfolio Management charges included in other expenses. Its Inability to effectively reduce and control these expenses may adversely impact its profitability in the future.
6. The company depends on a limited number of customers for a significant portion of its revenues. The loss of a major customer or significant reduction in demand from any of the company major customers may adversely affect its business, financial condition, results of operations and prospects.
7. Its top two states contribute the company major revenue for the year ended 31st March 2024, 2023, 2022. Any loss of business from one or more of these states may adversely affect its revenues and profitability.
8. Its contingent liabilities as stated in the company Restated Financial Statements could adversely affect its financial conditions.
9. Its underwriting, risk management and collection processes may not be able to effectively identify, monitor or mitigate the risks in its lending operations.
10. The company is required to comply with guidelines issued by regulatory authorities in India, which are evolving and may increase its compliance costs and subject it to penalties.
Usha Financial Services Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| Anchor | 1.00 | 16,60,800 | 16,60,800 | 27.9 |
| HNI | 28.93 | 8,31,200 | 2,40,48,800 | 404.02 |
| Market Maker | 1.00 | 3,20,800 | 3,20,800 | 5.39 |
| QIB | 10.04 | 11,08,000 | 1,11,27,200 | 186.94 |
| Retail | 20.76 | 19,39,200 | 4,02,55,200 | 676.29 |
| Total | 19.45 | 38,78,400 | 7,54,31,200 | 1 |
Usha Financial Services Limited IPO GMP
Last updated 16 Oct, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 16 Oct, 2024 | 168 | ₹0 | -- | ₹168 (0.00%) | - | 16 Oct, 2024 |
| 17 Oct, 2024 | 168 | ₹0 | -- | ₹168 (0.00%) | - | 17 Oct, 2024 |
| 18 Oct, 2024 | 168 | ₹0▼ | -- | ₹168 (0.00%) | - | 18 Oct, 2024 |
| 21 Oct, 2024 | 168 | ₹40▼ | 24300 | ₹208 (23.81%) | - | 21 Oct, 2024 |
| 22 Oct, 2024 | 168 | ₹45 | 27400 | ₹213 (26.79%) | - | 22 Oct, 2024 |
| 23 Oct, 2024 | 168 | ₹45 | 27400 | ₹213 (26.79%) | - | 23 Oct, 2024 |
| 24 Oct, 2024 | 168 | ₹45▼ | 27400 | ₹213 (26.79%) | - | 24 Oct, 2024 |
| 25 Oct, 2024 | 168 | ₹51▲ | 31000 | ₹219 (30.36%) | - | 25 Oct, 2024 |
| 26 Oct, 2024 | 168 | ₹30▲ | 18200 | ₹198 (17.86%) | - | 26 Oct, 2024 |
| 29 Oct, 2024 | 168 | ₹10 | 6100 | ₹178 (5.95%) | - | 29 Oct, 2024 |
| 30 Oct, 2024 | 168 | ₹10 | 6100 | ₹178 (5.95%) | - | 30 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for Usha Financial Services Limited IPO
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Usha Financial Services Limited (UFSL) IPO
IPO Overview and Key Highlights
Usha Financial Services Limited (UFSL) is offering its Initial Public Offering (IPO) with a fresh issue of 58,60,000 equity shares of ?10 each. The company plans to raise funds for general corporate purposes and working capital requirements. The IPO will be listed on the NSE Emerge Platform?.
Key IPO Details
- Type of Issue: 100% Book Built
- Total Issue Size: 58,60,000 Equity Shares
- Face Value: Rs10 per share
- Price Band: [Not yet disclosed]
- Listing Exchange: NSE Emerge Platform
- Promoters: Mr. Rajesh Gupta, Mr. Anoop Garg, Ms. Geeta Goswami, Ms. Nupur Gupta, and M/s BR Hands Investments Private Limited
- Issue Opens: October 24, 2024
- Issue Closes: October 28, 2024?.
Company Overview
Usha Financial Services Limited was incorporated in 1995 as a non-banking financial company (NBFC). It provides a wide range of financial services, including loans against property, business loans, and personal loans. The company aims to cater to a growing demand for credit in India, particularly among small and medium-sized enterprises (SMEs)?.
Financial Overview
UFSL has shown consistent revenue growth, driven by an increasing client base and diversified financial services. The company’s focus on expanding its loan book, while maintaining credit quality, positions it for future growth in the NBFC sector.
Key Strengths of Usha Financial Services Limited
- Diverse Loan Portfolio: UFSL offers a wide range of loan products catering to various sectors, which helps diversify risk.
- Experienced Management: The promoters and management have extensive experience in the financial services industry, which adds to the company’s credibility and strategic direction.
- Strong Growth Prospects: With India's rising demand for credit, UFSL is poised to benefit from increasing financial inclusion and lending opportunities?.
IPO Pros and Cons
Pros
- Expansion Opportunities: With the growing need for financial services, particularly in the SME sector, UFSL is well-positioned for expansion.
- Experienced Promoters: The management team's experience in the NBFC space ensures a well-guided business strategy.
- No Offer for Sale: Since the IPO consists entirely of a fresh issue, the proceeds will go toward expanding the company's operations?.
Cons
- Market Risks: As with any financial services provider, UFSL’s performance is dependent on broader economic conditions, which could impact credit demand and loan repayment.
- Competition: The NBFC space is highly competitive, with both established players and emerging startups offering similar products?.
- First Public Issue: As this is UFSL’s first IPO, there is uncertainty around how the stock will perform post-listing?.
Risk Factors
Investors should consider several risks associated with this IPO:
- Credit Risk: As a lending institution, UFSL is exposed to the risk of non-performing assets (NPAs) if borrowers default on their loans.
- Economic Sensitivity: The company’s business model is sensitive to changes in the economic environment, particularly in terms of interest rates and credit availability.
- Competition: UFSL faces stiff competition from other NBFCs and banks, which may put pressure on margins and market share?.
Conclusion
The Usha Financial Services Limited IPO offers an opportunity for investors seeking exposure to the NBFC sector, particularly in the growing market for SME loans. With an experienced management team and a diversified loan portfolio, the company is well-positioned for growth. However, potential investors should weigh the risks, including market competition and economic factors, before investing in the IPO.
FAQs About Usha Financial Services Limited Ipo
Usha Financial Services Limited IPO will open on 24 Oct, 2024 and close on 28 Oct, 2024. Investors must apply within this period to participate.
The Usha Financial Services Limited IPO price band is set between ₹160.00 and ₹168.00 per share. The minimum lot size is 800, requiring an investment of at least ₹134400.00.
The Usha Financial Services Limited IPO shares are expected to be listed on 31 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Usha Financial Services Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Usha Financial Services Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.