Usha Financial Services IPO Overview
Usha Financial Services, a prominent non-banking finance company (NBFC) with a strong focus on lending solutions and EV financing, launched its initial public offering (IPO) aiming to raise Rs 98.45 crore. The IPO was met with enthusiastic demand, as evidenced by the subscription levels achieved by the second day of bidding, October 25.
Key Details of Usha Financial Services IPO
Issue Size: 41.99 lakh shares
Subscription Rate on Day 2: 3.13 times
Price Band: Rs 160-168 per share
IPO Closing Date: October 28
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Funds Targeted: Rs 98.45 crore at the upper price band
Breakdown of Investor Demand by Category
Investor response to the IPO has been robust across categories:
Retail Investors: 4.61 times subscription, showcasing high interest.
Non-Institutional Investors (NII): 3.63 times the reserved quota.
Qualified Institutional Buyers (QIBs): 1.07 times the allocation, with steady participation from large investors.
Anchor Investors Show Confidence
On October 23, prior to the IPO’s opening, Usha Financial Services secured Rs 27.9 crore from notable anchor investors. Key names include Copthall Mauritius Investment, NAV Capital VCC, Kingsman Wealth Fund, Persistent Growth Fund, Saint Capital Fund, Veer Quant Fund, and Arrow Emerging Opportunities Fund, who purchased 16.6 lakh shares.
Tip: Anchor investors play an important role in instilling market confidence by investing large sums before public bidding starts, signaling trust in the company.
Fund Allocation Plans for Usha Financial Services IPO
Founded in 1995, Usha Financial Services is a seasoned player in the financial sector, offering lending solutions to NBFCs, corporates, and MSMEs, with a special focus on women entrepreneurs and EV financing. The company plans to use IPO proceeds to strengthen its capital base by Rs 70 crore, with the rest allocated for general corporate purposes and IPO-related expenses.
Why Usha Financial Services IPO Stands Out
This IPO stands out for its focus on growth in lending to MSMEs and individual entrepreneurs, as well as expanding its presence in green financing through electric vehicle (EV) financing. These sectors are rapidly evolving, aligning with government policies promoting MSMEs and EV adoption.
Subscription Timeline and How to Apply
The IPO will remain open for public subscription until October 28. Here’s how you can apply:
- Log in to your demat account with your preferred brokerage.
- Search for Usha Financial Services IPO under the IPO section.
- Select the number of shares and set your bid price within the Rs 160-168 range.
- Confirm your application and complete payment.
Note: Ensure you apply before the deadline to avoid missing out on this opportunity.
Final Thoughts on Usha Financial Services IPO
The Usha Financial Services IPO has shown strong initial demand, especially from retail investors, suggesting confidence in the company’s growth potential and market positioning. With reputable anchor investors and a promising financial services portfolio, Usha Financial Services could be a valuable addition to long-term portfolios.
Lead Managers and Additional Information
Narnolia Financial Services and Unistone Capital are acting as the lead book managers for this IPO.
Stay updated on the latest IPO performance, allotment results, and stock market insights by following our blog for ongoing financial market news.
This article is for informational purposes only and should not be considered financial advice. Please consult a professional before making investment decisions.
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