The recently launched Usha Financial Services IPO has made a remarkable debut on its opening day, showcasing strong demand from diverse investor segments. Open for subscriptions from October 24, 2024, to October 28, 2024, the IPO has garnered significant attention with a solid price band set between ₹160 and ₹168 per share, aiming to raise ₹98.45 crore at the upper end. The robust investor interest signals positive trends for the future of this non-banking financial company (NBFC) as it aims to capitalize on its market opportunities.
| Table of Contents |
|---|
| IPO Details |
| Subscription Status on Day 1 |
| Grey Market Premium (GMP) |
| Investment Details |
| Company Overview |
| Key Dates |
| Lead Managers and Registrar |
| Conclusion |
| FAQ |
IPO Details
Subscription Timeline
The initial public offering (IPO) of Usha Financial Services is set to open for subscription on October 24, 2024, lasting until October 28, 2024.
Financial Goals
The company targets to raise approximately ₹98.45 crore by issuing shares at the upper pricing of ₹168.
Share Structure
Usha Financial Services will launch a fresh issue of 58.6 lakh shares. Notably, there is no offer-for-sale component, which emphasizes that the company is raising funds through new equity rather than selling existing shares.
Subscription Status on Day 1
Overall Subscription Metrics
On its opening day, the IPO was subscribed by 52%, reflecting strong overall demand among various investor categories.
Breakdown by Investor Category
- Qualified Institutional Buyers (QIBs): This segment was fully booked at a rate of 1.07 times within the first day.
- Retail Investors: The subscription rate stood at around 39%.
- Non-Institutional Investors (NIIs): Attention in this segment remained modest with a 10% subscription rate.
Grey Market Premium (GMP)
Current GMP Statistics
The Grey Market Premium for the Usha Financial Services IPO was noted at ₹45 on the opening day. This implies that the shares are predicted to trade at approximately ₹213 upon listing.
Potential Listing Price
Given the GMP, the potential listing price indicates an encouraging premium of 26.79% above the upper limit of the IPO price, reflecting optimistic investor sentiments.
Investment Details
Minimum Investment Requirements
Investors looking to participate must note that the minimum lot size is 800 shares, requiring an initial investment of ₹134,400 for retail investors. For high net-worth individuals (HNIs), the minimum investment doubles to two lots, translating to 1,600 shares or ₹268,800.
Company Overview
Background and Experience
Usha Financial Services is a well-established non-banking finance company (NBFC) with over nine years of experience in the financial industry.
Services Offered
The company primarily provides lending solutions catered to NBFCs, micro, small and medium enterprises (MSMEs), corporates, and individuals, placing special emphasis on women entrepreneurs.
Key Dates
IPO Allotment
The IPO allotment is expected to be finalized on October 29, 2024.
Listing Date
The shares are slated to be officially listed on the market on October 31, 2024.
Lead Managers and Registrar
Management Team
The IPO is being managed by book-running lead managers Narnolia Financial Services and Unistone Capital Pvt Ltd.
Supporting Entities
Skyline Financial Services is serving as the registrar for the IPO, while SS Corporate Securities acts as the market maker.
Conclusion
The strong investor interest in the Usha Financial Services IPO on its opening day reflects confidence in both the company and its business model. The positive Grey Market Premium further enhances optimistic forecasts for the share price upon listing. This IPO signifies a significant step towards Usha Financial Services expanding its footprint in the growing financial services market.
FAQ
What is the price range for Usha Financial Services shares?
The price band for Usha Financial Services shares is set between ₹160 and ₹168 per share.
When will the shares be listed?
The shares are expected to be listed on October 31, 2024.
What is the Grey Market Premium for this IPO?
The Grey Market Premium (GMP) noted on the opening day was ₹45.
How much capital is Usha Financial Services aiming to raise?
The company is looking to raise ₹98.45 crore at the upper end of the price range.
