Usha Financial Services Limited has recently launched its Initial Public Offering (IPO), gaining significant attention in the Indian market. Known for supporting small businesses and offering financial solutions to underserved markets like women entrepreneurs, this IPO has attracted investors with promising growth figures and a substantial Grey Market Premium (GMP). Here, we’ll explore everything about the Usha Financial Services IPO, focusing on “Usha Financial Services IPO GMP Today,” its subscription status, business model, financials, and much more.
Usha Financial Services IPO Details at a Glance
The IPO for Usha Financial Services opened for subscription on October 24, 2024, and will be closing on October 28, 2024. Here’s a quick snapshot of the essential details:
| IPO Detail | Information |
|---|---|
| IPO Opening Date | October 24, 2024 |
| IPO Closing Date | October 28, 2024 |
| Issue Size | ₹98 crore (58.6 lakh shares) |
| Price Band | ₹160 – ₹168 |
| Lot Size | 800 shares |
| Minimum Investment | ₹134,400 (at upper price) |
| Allocation | QIBs – 50%, RIIs – 35%, NIIs – 15% |
| Listing Date | October 31, 2024 |
Investors are required to purchase a minimum of 800 shares in one lot, amounting to ₹134,400 at the higher end of the price range. The Usha Financial Services IPO GMP today is currently trading at a ₹50 premium, reflecting strong demand and confidence in this IPO’s potential.
Usha Financial Services IPO Subscription Status
The Usha Financial Services IPO has already seen impressive interest across investor categories since opening. Here’s the subscription status as of October 29, 2024:
- Qualified Institutional Buyers (QIBs): 5.71 times subscribed
- Non-Institutional Investors (NIIs): 13.42 times subscribed
- Retail Individual Investors (RIIs): 17.09 times subscribed
- Total Subscription: 17.96 times
This early subscription rate showcases investors’ excitement and confidence in the IPO, with high participation from both retail and institutional buyers.
Usha Financial Services IPO GMP Today
As of October 29, 2024, the Usha Financial Services IPO GMP today is valued at ₹10. This translates to a potential listing price of around ₹178 per share, approximately 5.95% above the upper price band of ₹168. This rising premium indicates investor optimism and reflects a positive outlook for the company’s growth in the near future.
What Is Grey Market Premium (GMP)? GMP is a premium at which shares are traded in the grey market before they officially list on the stock exchange. A higher GMP suggests strong demand and confidence in the IPO’s performance. The Usha Financial Services IPO GMP today suggests a healthy demand for the shares and a possible upward trend when the stock lists on October 31, 2024.
Business Overview of Usha Financial Services
Usha Financial Services Limited has been operating as a Non-Banking Financial Company (NBFC) since 1995. Registered with the Reserve Bank of India (RBI), the company offers a wide range of lending solutions, including retail and wholesale lending, focusing on Micro, Small, and Medium Enterprises (MSMEs) and individual clients, particularly women entrepreneurs. Here’s a closer look at its business focus:
- Lending Solutions:
- Loans to NBFCs and Corporates
- Green Financing, including Electric Vehicle (EV) loans
- MSME Loans to empower small businesses and entrepreneurs
By targeting underserved markets, Usha Financial Services is actively contributing to India’s financial ecosystem, fostering growth in sectors that need it the most.
Financial Performance and Key Metrics
Usha Financial Services’ financials demonstrate its growth potential and solid foundation. Here’s a breakdown of the company’s recent performance:
- Assets Under Management (AUM): ₹30,695.76 lakhs
- Net Worth: ₹10,602.63 lakhs
- Revenue Growth: For FY24, Usha Financial Services reported revenues of ₹63.96 crore, a 38% increase year-over-year (YoY).
- Profit After Tax (PAT): ₹13.44 crore, representing a 32% growth YoY.
- Capital Adequacy Ratio (CRAR): 33.03%
- Debt-to-Equity Ratio: 1.71
With solid growth metrics and a strong market reputation, Usha Financial Services appears well-positioned to continue expanding its reach within the financial sector.
Usha Financial Services IPO Review: A Smart Investment?
The Usha Financial Services IPO GMP today shows a positive trajectory, indicating strong demand. Coupled with its strategic focus on women entrepreneurs, MSMEs, and green financing, the company presents a unique investment opportunity, especially for those interested in supporting sustainable and inclusive financial growth.
Strengths:
- Strong focus on underserved markets
- Growth in revenue and profit
- Promising GMP indicating investor confidence
Potential Risks:
- Reliance on the non-banking sector, which can be more volatile
- Competition in lending services
Overall, Usha Financial Services’ IPO provides an appealing option for investors seeking growth and diversity in their portfolios.
Important Allotment and Listing Dates
Mark these dates to keep track of Usha Financial Services IPO’s allotment and listing:
- Allotment Date: October 29, 2024
- Demat Credit & Refunds: October 30, 2024
- Listing Date: October 31, 2024 (NSE SME platform)
Investors will be able to check their Usha Financial Services IPO allotment status on the NSE website under the IPO section by October 29.
FAQs on Usha Financial Services IPO
1. What is the Usha Financial Services IPO GMP Today?
The Usha Financial Services IPO GMP today is ₹10, indicating a strong demand and suggesting a potential listing price of around ₹178.
2. How much do I need to invest in the Usha Financial Services IPO?
The minimum investment is ₹134,400 for 800 shares at the upper price band of ₹168.
3. When will Usha Financial Services IPO shares list?
The shares are expected to list on October 31, 2024, on the NSE SME platform.
4. What is the subscription breakdown?
The IPO allocation is divided as follows:
- QIBs: 50%
- RIIs: 35%
- NIIs: 15%
5. What is the purpose of Usha Financial Services IPO?
The IPO proceeds will go towards strengthening the company’s capital base and general corporate purposes.
6. What is Usha Financial Services’ business model?
Usha Financial Services operates with two primary lending models: retail lending (targeting individuals and small businesses) and wholesale lending (providing funds to other NBFCs and corporates).
7. How can I apply for the Usha Financial Services IPO?
Investors can apply through trading platforms by navigating to the IPO section, selecting Usha Financial Services IPO, choosing the number of lots, and submitting their UPI ID.
In conclusion, the Usha Financial Services IPO is an appealing option with strong investor interest, demonstrated by its high subscription rates and GMP today. Its business model, financial health, and strategic focus on underserved markets make it an attractive opportunity for investors looking for growth potential in the NBFC sector. Don’t miss the chance to consider this IPO before it closes on October 28, 2024.