Usha Financial Services Limited is launching an IPO with a total issue size of ₹98.45 crores, comprising a fresh issue of 58.6 lakh shares. The IPO will be open for subscription from October 24, 2024, to October 28, 2024. Investors can apply within a price band of ₹160 to ₹168 per share. The minimum lot size is 800 shares, requiring a retail investment of at least ₹1,34,400.
High Net Worth Individuals (HNIs) must apply for at least two lots (1,600 shares), with a minimum investment of ₹2,68,800. The IPO will be listed on NSE SME, with a tentative listing date set for October 31, 2024. Narnolia Financial Services Ltd and Unistone Capital Pvt Ltd are the book-running lead managers, while Skyline Financial Services Pvt Ltd is the registrar. Ss Corporate Securities will act as the market maker for this IPO.
Industry Outlook:
- As of August 2024, India's NBFC sector achieved a 25.8% year-on-year growth, demonstrating resilience amid global uncertainties, driven by digital innovations and financial inclusion.
- The NBFC sector is projected to grow at a CAGR of 13-15% over the next few years, with assets under management increasing by 13-14% in FY 2023.
Usha Financial Services IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- To Augment the capital base of the company.
- To meet out the General Corporate Purposes.
- To meet out the Issue Expenses.
About Usha Financial Services Limited
Incorporated in May 1995, Usha Financial Services Limited is a non-banking finance company offering lending solutions to NBFCs, corporates, MSMEs, and individuals, with a focus on women entrepreneurs. The company also specialises in Electric Vehicle (EV) financing and provides a diverse range of financial products. As of September 30, 2024, Usha Financial Services has an Assets Under Management (AUM) of ₹30,695.76 lakhs and a Net Worth of ₹10,602.63 lakhs, maintaining a strong CRAR of 33.03% and a Debt-to-Equity ratio of 1.71.
The company operates through two key business models: Retail Lending and Wholesale Lending, with a product portfolio that includes loans to other NBFCs, corporates, and green financing. With long-term relationships with 4 banks and 15 NBFCs, Usha Financial Services leverages strategic partnerships to drive its retail lending business. The company’s experienced management, robust customer due diligence, and a dedicated team of 43 employees are key strengths.
Peer Details
The only listed company considered by Aztec Fluids & Machinery as its peers is IBL Finance Ltd.
How to Check the Allotment Status of the Usha Financial Services IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Usha Financial Services IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Usha Financial Services IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Usha Financial Services IPO
- Registered office: 330, Mezanine Floor Functional Industrial Estate, Patparganj, Delhi- 110092, India
- Phone: 011 47019079
- E-mail: compliance@ushafinancial.com
IPO Financials
| Particulars | For the period ended September 31, 2024 | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|---|
| Revenue from operation (in ₹ lakh ) | 2,651.14 | 6322.20 | 4563.17 |
| Profit After Tax (PAT) (in ₹ lakh) | 504.16 | 1344.95 | 1016.55 |
| AUM (in ₹ lakh) | 31,817.70 | 30,695.76 | 35,768.94 |
| Net Worth (in ₹ lakh) | 11,106.79 | 10,602.63 | 8,207.38 |
| Return on Total Assets (%) | 2.93% | 3.80% | 3.79% |
| Return on Equity (%) | 9.29% | 14.30% | 15.67% |
| Return on Capital Employed (RoCE) (%) | 12.02% | 15.40% | 14.88% |
| Earning Per Share (EPS)-in absolute ₹ | 3.18 | 8.64 | 7.42 |
Know before investing
Strengths
6Experienced management team with over 25 years of industry experience.
Strong AUM of ₹30,695.76 lakhs and Net Worth of ₹10,602.63 lakhs.
Strategic agreements with 13 business partners across 19 states.
Robust underwriting process with comprehensive risk management policies.
CRAR of 33.03% and Debt-to-Equity Ratio of 1.71.
Established partnerships with 4 banks and 15 NBFCs for financing.
Risks
6High dependency on capital; borrowings total ₹18,861.94 lakhs.
NPAs increased to ₹1,260.97 lakhs as of September 2024.
Top 2 states contribute 39.06% of total revenue.
Portfolio management fees constitute 9.66% of revenue from operations.
Dependent on top 10 customers for 40.12% of revenue.
Contingent liability of ₹58.88 lakhs pending with the Income Tax Department.
