Nisus Finance Services Lists at 25% Premium, Shows Robust Market Response on BSE SME

Nisus Finance Services Co Limited, a well-established player in the financial services sector since 2013, made a remarkable market debut on Wednesday, 11th December 2024. The company, which has built a strong reputation in transaction advisory and fund management with approximately ₹1,000 crore in Assets Under Management, launched its shares on the BSE SME platform amid high investor expectations.

Nisus Finance IPO Listing Details

The company's market entry reflected strong investor confidence in its business model:

• Listing Time & Price: When trading commenced at market open, Nisus shares debuted at ₹225 on BSE SME, delivering an immediate 25% gain to IPO investors. This strong opening validated the market's appetite for specialized financial services companies with proven track records.
• Issue Price Context: The substantial premium came after the company had thoughtfully priced its IPO between ₹170 and ₹180 per share, ultimately fixing the final issue price at ₹180. This pricing strategy balanced accessibility for retail investors with fair value for the company.
• Price Evolution: By 11:54 AM IST, the enthusiasm for the stock continued to build, pushing it to hit the upper circuit at ₹236.25. This represented an impressive 31.25% gain over the issue price, demonstrating sustained buying interest throughout the early trading session.

Nisus Finance Services First-Day Trading Performance

The trading activity showed robust participation across investor categories:

• Volume and Value: Within just the first few hours, 22.90 lakh shares changed hands, generating a substantial turnover of ₹40.63 crore. Notably, 100% of traded shares were marked for delivery, indicating genuine investment interest rather than speculative trading.
• Demand Dynamics: The stock's appeal was evident in the order book, which showed tremendous buying pressure with orders for 8.36 lakh shares while sellers remained absent at the upper circuit. This imbalance highlighted strong investor belief in the company's long-term prospects.

Nisus Finance Services Market Response and Subscription Analysis 

The successful listing followed an exceptionally strong response during the IPO phase:

• Overall Subscription: The issue attracted bids for over 80.87 crore shares against 42.05 lakh shares offered, resulting in a remarkable subscription ratio of 192.29 times. This level of oversubscription reflected broad-based investor confidence across categories.
• Category-wise Interest: Non-institutional investors showed particular enthusiasm with 451.21 times subscription, while retail investors participated robustly at 139.78 times. Even qualified institutional buyers demonstrated strong conviction with 93.84 times subscription.
• Institutional Backing: The company had already established credibility by raising ₹32.21 crore from 11 anchor investors, including prominent names like Chhattisgarh Investments Limited and Negen Undiscovered Value Fund, before the public issue.

Nisus Finance Services Growth Drivers and Challenges

Expected drivers of future performance:

• Well-established NiFCO brand with a strong reputation in financial services
• Diversified revenue streams combining transaction advisory and fund management
• Significant growth potential in AUM from current ₹1,000 crore base
• Strategic expansion plans into international markets via GIFT City, Dubai, and Mauritius
• Experienced management team with a proven track record

Potential challenges:

• Valuation concerns with P/BV ratio of 10.48x
• The recent surge in profitability needs sustainability validation
• Highly competitive financial services landscape
• Complex regulatory environment across multiple jurisdictions
• High dependence on real estate and infrastructure sectors
   

Nisus Finance Services Utilization of IPO Proceeds 

The company's ₹114.24 crore Nisus Finance IPO proceeds are allocated strategically:

• Expansion of fund management infrastructure in key financial centers:

        a. IFSC-Gift City (Gandhinagar)
        b. DIFC-Dubai (UAE)
        c. FSC-Mauritius

• Distribution network development through third-party channels
• Investment in Nisus Fincorp Private Limited (NBFC subsidiary)
• General corporate purposes
   

Nisus Finance Services Financial Performance

The company has demonstrated exceptional growth:

• Revenue increased by 266.16% to ₹42.25 crore in FY2024 from ₹11.54 crore in FY2023
• Profit After Tax rose by 663.29% to ₹23.05 crore in FY2024 from ₹3.02 crore in FY2023
• Q1 FY2025 showed revenue of ₹15.01 crore with PAT of ₹8.36 crore

As Nisus Finance begins its journey as a listed entity, market participants will closely monitor its ability to execute its international expansion plans and maintain its growth trajectory. The strong listing and continued buying interest suggest positive investor sentiment toward the company's prospects in the specialized financial services sector.