NSE SME Usha Financial Services drops on debut

The scrip was listed at Rs 164, a discount of 2.38% over the initial public offer (IPO) price. The stock was currently frozen at its lower limit of 5% compared to its listing price.

The counter hit a high of Rs 168 and a low of Rs 155.80. About 11.38 lakh shares of the company changed hands at the counter.

Usha Finance Services' IPO was subscribed 12.87 times. The issue opened for bidding on 24 October 2024 and it closed on 28 October 2024. The price band of the IPO was set at Rs 160 to Rs 168 per share.

The IPO comprised fresh issue of 58,60,000 shares. The company intends to utilize the net proceeds for augment the capital base of company and for general corporate purpose.

Ahead of the IPO, Usha Financial Services on 23 October 2024, raised Rs 27.90 crore from anchor investors. The board allotted 16.60 lakh shares at Rs 380 per share to 12 anchor investor.

Usha Financial Services is a non-banking finance company (NBFC) registered with the Reserve Bank of India as a NBFC-ICC (Investment & Credit) - base layer- non-systemically important non-deposit taking NBFC with over 9 years of lending experience. It provides lending solutions to fellow NBFCs and corporates, MSMEs, and individual, particularly to women entrepreneurs. The NBFC's services also extend to electric vehicle (EV) financing.

As on 30 September 2024, the company had asset under management (AUM) of Rs 318.17 crore, capital to risk assets ratio (CRAR) of 33.54% and a debt to equity (D/E) ratio of 1.70. As on 14 October 2024, the company had 42 employees.

The company recorded revenue from operations of Rs 26.51 crore and net profit of Rs 5.04 crore for the period as on 30th September 2024.