Usha Financial Services, a well-known non-banking financial company (NBFC), has launched its much-anticipated initial public offering (IPO) today, October 24. The IPO will be open for three days and will close on Monday, October 28. The strong interest from investors has been evident right from the start, with the IPO already 50% subscribed within just one hour of opening.
Key Details of the IPO
The price range for Usha Financial Services’ IPO is set between ₹160 and ₹168 per share. The company aims to raise approximately ₹98.45 crore at the highest price. Importantly, this IPO consists entirely of a fresh issue of 58.6 lakh shares, meaning there are no shares being sold by existing shareholders.
Subscription Status
As of now, the subscription status shows positive momentum. On the first day of bidding, the issue has already received 52% of the total bids. The allocation for qualified institutional buyers (QIBs) has been fully booked at 1.07 times, indicating strong interest from large investors. Meanwhile, retail investors have subscribed to 39% of their quota, and non-institutional investors (NIIs) have subscribed to 10%.
This early demand reflects a strong belief in Usha Financial Services’ potential among both individual and institutional investors. The interest from QIBs is particularly notable, as these investors are often seen as more knowledgeable about the market.
Another positive sign for the IPO is the gray market premium (GMP), which currently stands at ₹45. This means that shares of Usha Financial Services are trading ₹45 higher than the upper price band of ₹168 in the gray market. If this trend continues, analysts predict that the stock could list at around ₹213, representing a potential gain of 26.79% over the IPO price.
Usha Financial Services has been operating for over nine years and has built a reputation for providing lending solutions to various clients, including NBFCs, micro, small, and medium enterprises (MSMEs), corporations, and individuals. The company has a special focus on supporting women entrepreneurs, showcasing its commitment to empowering diverse groups in the business landscape.
The funds raised from this IPO will be used to enhance the company’s growth strategies, which include expanding its loan portfolio, investing in technology, and boosting its brand visibility.
For retail investors, the minimum investment in the Usha Financial Services IPO is ₹134,400, which requires subscribing to a lot size of 800 shares. High net-worth individuals (HNIs) will need to invest at least ₹268,800 for a minimum of two lots, totaling 1,600 shares.
The IPO allotment process is expected to be completed on Tuesday, October 29, with shares likely to be listed on the stock exchange by Thursday, October 31.
The initial public offering of Usha Financial Services has opened with strong demand and positive indicators, including substantial subscriptions and a healthy gray market premium. As investors look forward to the final subscription numbers and allotment process, it is essential to remember the importance of conducting research before investing in any IPO. The company’s commitment to growth and its focus on supporting women entrepreneurs make it an attractive investment opportunity.
