Usha Financial Services IPO: Here are 10 latest Key things you need to know

Usha Financial Services IPO is scheduled to open on October 24, 2024, and will close on October 28, 2024. This NSE SME IPO aims to raise approximately ₹98.45 crores through a 100% fresh issue of equity shares with a face value of ₹10 per share. The price band for the IPO is set at ₹160-₹168 per share, and the minimum market lot is 800 shares.

2. IPO Subscription and Allotment

The allocation for this IPO is divided into three categories: 35% for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net-Worth Individuals (HNIs). The basis of allotment is scheduled for October 29, 2024, and the shares will be credited to investors’ demat accounts on October 30, 2024. The IPO is expected to be listed on the NSE SME platform on October 31, 2024.

3. Company Overview

Usha Financial Services Limited, established in 1995, operates as a Non-Banking Finance Company (NBFC). The company provides a variety of lending solutions catering to different segments, including corporates, other NBFCs, MSMEs, and individual borrowers, with a special focus on women entrepreneurs. Usha Financial Services also supports the financing needs of the rapidly growing Electric Vehicle (EV) sector in India.

4. Strong Management Team

The company has a well-experienced management team consisting of qualified professionals from the finance sector. This management team plays a crucial role in effective risk management and decision-making, ensuring the company remains competitive and efficient in its operations while minimizing risks and maximizing returns.

5. Risk Management Practices

Usha Financial Services employs a thorough assessment process for evaluating the repayment capacity of borrowers. The company’s robust risk management practices are designed to minimize defaults and ensure a healthy loan portfolio, maintaining the quality of assets and profitability.

6. Partnerships and Collaborations

The company has entered into strategic partnerships with other NBFCs, which expands its reach and enhances its capacity to disburse loans. These collaborations allow Usha Financial Services to leverage partner networks and grow its customer base while diversifying its lending portfolio across various industries and segments.

7. IPO Objectives and Utilization of Funds

The primary objectives of the IPO include the augmentation of the company’s capital base to support further growth and expansion. Additionally, the funds will be allocated for general corporate purposes, which will aid in the company’s strategic expansion and operations, ensuring financial stability and scalability.

8. Financial Performance

As of June 2024, Usha Financial Services reported assets of ₹35,133.66 lakhs, revenue of ₹2,681.26 lakhs, and a profit after tax (PAT) of ₹504.16 lakhs. Over the years, the company has shown consistent growth in assets, revenue, and profitability, reflecting its strong operational efficiency and market presence.

9. Comparison with Peers

Usha Financial Services is compared with its peers, such as IBL Finance Limited. Usha Financial Services has a Basic and Diluted EPS of ₹8.64, a NAV of ₹66.78, a P/E ratio of 14.3, and an RoNW of 12.9%, indicating a stronger position compared to IBL Finance Limited, which has lower metrics in terms of earnings and return on net worth.

10. How to Apply for the IPO

Investors can apply for the Usha Financial Services IPO through ASBA (Applications Supported by Blocked Amount) online via their bank accounts or stockbroker platforms. Offline application forms are also available on the NSE website. The process involves selecting the IPO, placing a bid, and confirming the application through a UPI app. Popular platforms like M-Stock, Alice Blue, and Motilal Oswal provide easy application options for users.