Usha Financial Services IPO: Fresh Issue of ₹98.45 Crores at ₹160-₹168

Usha Financial Services Limited, incorporated in May 1995, 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. As of 30th September 2024, the company had an AUM of ₹30,695.76 Lakhs and a Net worth of ₹10,602.63 Lakhs, maintaining a CRAR of 33.03% and a D/E Ratio of 1.71.

The Objectives of the Issue

The company intends to utilize the Net Proceeds for the following objectives:

• Augment the capital base of the Company
• General Corporate Purposes

Highlights of Usha Financial Services IPO

Usha Financial Services IPO is set to launch with a book-built issue of ₹98.45 crores. The issue is entirely a fresh issue. Here are the key details of the IPO:

• The IPO opens for subscription on 24th October 2024 and closes on 28th October 2024.
• The allotment is expected to be finalised on 29th October 2024.
• Refunds will be initiated on 30th October 2024.
• Credit of shares to Demat accounts is also expected on 30th October 2024.
• The company will tentatively list on NSE SME on 31st October 2024.
• The price band is set at ₹160 to ₹168 per share.
• The fresh issue comprises 58.6 lakh shares, aggregating to ₹98.45 crores.
• The minimum lot size for the application is 800 shares.
• Retail investors need to invest a minimum of ₹134,400.
• The minimum investment for HNI is 2 lots (1,600 shares), amounting to ₹268,800.
• Narnolia Financial Services Ltd and Unistone Capital Pvt Ltd are the book running lead managers for the IPO.
• Skyline Financial Services Private Ltd serves as the registrar.

Highlights of Usha Financial Services IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 28th October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Usha Financial Services IPO Issue Details/Capital History

Usha Financial Services IPO is scheduled from 24th October to 28th October 2024, with a price band of ₹160 to ₹168 per share and a face value of ₹10. The total issue size is 58,60,000 shares, raising up to ₹98.45 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 1,58,77,631 shares, and the post-issue shareholding will be 2,17,37,631 shares. The company has raised ₹27.90 crore from anchor investors, with 16,60,800 shares allocated to them.

Usha Financial Services IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:
 

Investors can place bids for a minimum of 800 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Freshara Agro Exports Ltd

Strengths:

• Experienced management team
  Strategic agreements with NBFCs and other entities
  Extensive customer due diligence procedures
  Diversified product portfolio

Weaknesses:

• Relatively small size compared to larger NBFCs
• Concentration risk in certain lending segments

Opportunities:

• Growing demand for MSME and EV financing
• Potential for expansion into new geographical areas
• Increasing focus on financial inclusion

Threats:

• Regulatory changes affecting the NBFC sector
• Economic slowdowns impacting loan repayments
• Intense competition in the lending market

Financial Highlights: Usha Financial Services Ltd

Below are the consolidated financial results for recent periods:

Usha Financial Services Limited has shown significant growth in recent years. The company's revenue increased by 38%, and profit after tax (PAT) rose by 32% between the financial year ending on 31st March 2024 and 31st March 2023.

Revenue has seen substantial growth, rising from ₹2,531.36 lakh in FY22 to ₹6,396.05 lakh in FY24, marking an impressive increase of 152.7% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹414.42 lakh in FY22 to ₹1,344.95 lakh in FY24, representing a substantial growth of 224.5% over two years.

Net Worth has shown strong growth, increasing from ₹4,767.58 lakh in FY22 to ₹10,602.63 lakh in FY24, which represents an increase of about 122.4% over two years.

Total Borrowings have increased from ₹9,723.22 lakh in FY22 to ₹18,128.22 lakh in FY24, which represents an increase of about 86.4% over two years.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. The substantial increase in PAT and Net Worth indicate a strengthening financial position. However, investors should note the increase in borrowings, which may be related to expansion activities. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.