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Introduction to Usha Financial IPO
Incorporated in May 1995, Usha Financial Ltd is coming out with a book of Rs 98.45 crore. It will comprise entirely a fresh issue of 58.6 lakh shares. The Initial Public Offering (IPO) shall be opened on 24th October, 2024, and closed on 28th October, 2024.
The allotment for the same will occur on 29th October, 2024. The price range is fixed at Rs 160 to Rs 168 per share. A minimum of 800 shares constitutes the minimum lot size for a bid. Retail investors need to invest a minimum of Rs 134,400. HNI investors need a minimum investment of Rs 268,800 for 1,600 shares, which is 2 lots.
Skyline Financial Services Pvt Ltd is the registrar to the issue. Narnolia Financial Services Ltd and Unistone Capital Pvt Ltd are the book running lead managers in this IPO. The market maker for the same is Ss Corporate Securities.
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Usha Financial IPO GMP
The most recent GMP of the IPO is Rs 30, as of 28th October, 2024 9:45 AM. The IPO has a price band of Rs 168. The estimated listing price for Usha Financial Ltd is Rs 198, reflecting a potential gain of 17.00% per share.
Usha Financial Ltd IPO Details
| Usha Financial Ltd IPO Opening Date and Closing Date | 24th October to 28th October |
| Face Value | Rs 10 per share |
| Price Band | Rs 160 to Rs 168 per share |
| Lot Size | 800 Shares |
| Total Issue Size | 5,860,000 shares (aggregating up to Rs 98.45 Cr) |
| Fresh Issue | 5,860,000 shares (aggregating up to Rs 98.45 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE SME |
| Shareholding Pre-Issue | 15,877,631 |
| Shareholding Post Issue | 21,737,631 |
| Market Maker Portion | 320,800 Shares – Ss Corporate Securities |
| Basis of Allotment | Tuesday, 29th October, 2024 |
| Refund Initiation | Wednesday, 30th October, 2024 |
| Credit of Shares in Demat | Wednesday, 30th October, 2024 |
| Listing Date | Thursday, 31st October, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 28th October, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Usha Financial Ltd IPO Company Details
Usha Financial Services Ltd is a non-banking finance company which provides lending solutions to other NBFCs (Non-Banking Financial Companies), corporates, MSMEs (Micro, Small and Medium Enterprises), individuals especially women entrepreneurs.
They have finance for EVs, apart from this, offering a variety of financial products to individuals, corporates, NBFCs, and MSMEs.
AUM is at Rs 30,695.76 Lakh. Net Worth is Rs 10,602.63 Lakh. CRAR is at 33.03%. D/E Ratio is at 1.71. The company has long-term relationships with 4 banks, 15 NBFCs and others as on 30th September, 2024.
The two business models through which the revenue of the company is operated include: (A) Retail Lending and (B) Wholesale Lending.
Loans offered to NBFCs and corporates, green financing/EV financing, and MSME loans marketed to small entrepreneurs form its product portfolio.
As of 1st October, 2024, the company had 43 employees.
Usha Financial Ltd IPO Anchor Investors Details
| Bid Date | 23rd October, 2024 |
| Shares Offered | 1,660,800 |
| Anchor Portion Size (in Cr) | 27.90 |
| Anchor lock-in period end date for 50% shares (30 Days) | 28th November, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | 27th January, 2025 |
Usha Financial IPO lot size, shares, and their value:
| Application | Lots | Shares | Amounts |
| Retail (Min) | 1 | 800 | Rs 134,400 |
| Retail (Max) | 1 | 800 | Rs 134,400 |
| HNI (Min) | 2 | 1,600 | Rs 268,800 |
Usha Financial Ltd shares offered to Investor categories :
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Usha Financial Ltd Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 33,585.81 Lakh | Rs 37,222.64 Lakh |
| Revenue | Rs 6,396.05 Lakh | Rs 4,618.73 Lakh |
| Profit After Tax | Rs 1,344.95 Lakh | Rs 1,016.55 Lakh |
| Net Worth | Rs 10,602.63 Lakh | Rs 8,207.38 Lakh |
| Reserves and Supplies | Rs 9,014.87 Lakh | Rs 7,265.57 Lakh |
| Total Borrowing | Rs 18,128.22 Lakh | Rs 24,751.41 Lakh |
Should You Invest in the Usha Financial IPO?
Financial Performance:
Revenue: The company generated Rs 2,681.26 lakh in revenue during the period ended on 30th June, 2024.
Profit After Tax (PAT): The company earned a profit of Rs 504.16 lakh after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 11,106.79 lakh.
Financial Position:
Assets: The company’s total assets amounted to Rs 35,133.66 lakh.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 9,519.03 lakh.
Total Borrowing: The company has borrowed a total of Rs 18,861.94 lakh.
Usha Financial Key Performance Indicators (KPI) and their values:
The market capitalisation of Usha Financial Ltd IPO is Rs 365.19 crore.
| KPI | Values |
| Return on Equity (ROE) | 9.29% |
| Return on Capital Employed (ROCE) | 12.02% |
| Return on Net Worth (RoNW) | 9.29% |
| Price to Book Value (P/BV) | 24 |
| Debt/Equity | 1.7 |
Objectives of the Usha Financial Ltd IPO
The firm aims to utilise the net proceeds to enhance its capitalization and for other corporate activities.
Some major risks associated with the Usha Financial Ltd IPO are:
- Operating activities require a vast amount of financial investments, hence any imbalance in the cost of capital or its availability will affect the business, finances and even cash flow of the entity.
- The presence of low credit quality loans can also lead to negative consequences on the company’s operations and financial performance.
- Certain lenders have not approved the company’s offer which can, if not approved, lead to the need for alterations in plans or modifications of the capital-raising strategy.
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Frequently Asked Questions (FAQs)
What is the price band for Usha Financial’s IPO?
The price band is set between Rs 160 and Rs 168 per share.
What is the retail investor quota for Usha Financial’s IPO?
Retail investors will get at least 35% of the shares.
Where can I track Usha Financial’s stock performance?
You can track it on Unicorn Signals after listing.
How do I subscribe to Usha Financial’s IPO?
Subscribe via your demat account or through your bank/financial institution during the IPO period.
What is the closing time for Usha Financial’s IPO subscription?
The deadline is 5 PM on 28th October, 2024, but most brokers stop accepting applications by 1-3 PM.
