IPO Details
Bidding Dates
24 Oct 24 - 28 Oct 24
Price Range ₹
160 - 168
Total Equity
₹ 70.55Cr
Lot Size
800
Exchange Status
NSE
IPO Doc
Subscription Rate
Non-Institutional Investor
0.00×
Qualified Institutional Buyers
0.00×
Employees
0.00×
Retail Investors
0.00×
Total subscription Rate
0.00×
IPO Timeline
Offer start
24 Oct 2024
Offer end
28 Oct 2024
Allotment
29 Oct 2024
Refund initiation
30 Oct 2024
Demat transfer
30 Oct 2024
Listing
31 Oct 2024
Offer start
24 Oct 2024
Offer end
28 Oct 2024
Allotment
29 Oct 2024
Refund initiation
30 Oct 2024
Demat transfer
30 Oct 2024
Listing
31 Oct 2024
About Company
Founded in May 1995, Usha Financial Services Limited is a non-banking finance company (NBFC) that offers lending solutions to other NBFCs, corporations, MSMEs, and individuals, with a particular focus on women entrepreneurs. The company also provides Electric Vehicle (EV) financing and offers a wide range of financial products to individuals, corporate entities, NBFCs, and MSMEs. Usha Financial Services has an Assets Under Management (AUM) of Rs. 30,695.76 lakhs and a Net Worth of Rs. 10,602.63 lakhs. It maintains a Capital to Risk (Weighted) Assets Ratio (CRAR) of 33.03% and a Debt-to-Equity (D/E) ratio of 1.71. The company has built strong, long-term relationships with its lenders, which include 4 banks and 15 NBFCs as of September 30, 2024. Usha Financial Services follows two key business models to drive revenue: (A) Retail Lending and (B) Wholesale Lending. The company's product portfolio includes: - Loans to NBFCs and corporations - Green financing/electric vehicle financing - MSME loans, with a focus on small entrepreneurs Key strengths of the company include: - An experienced management team - Strategic agreements with NBFCs and other business partners, which are vital for its retail lending operations and provide access to a broad borrower network - Rigorous customer due diligence processes with multiple levels of checks and controls As of October 2024, Usha Financial Services had a team of 43 employees.
Year Founded
16-05-1995
Promotor Details
Promoter Holdings Details
| Particular | Pre-IPO | Post-IPO |
|---|---|---|
| Percentage | 98.81 | 72.32 |
| Share Capital | 15703855 | 15721455 |
Offer to Public
41,99,200.00 Cr
Project Details
- Augment the capital base of our Company - 700cr
Objectives
- To Augment the capital base of our Company.To meet out the General Corporate Purposes.To meet out the Issue Expenses.
Highlights
- The company has established collaborations with numerous NBFCs and other businesses, allowing it to expand its loan services to MSMEs across multiple states.
- Usha Financial Services uses the Vexil software, developed by Vexil Infotech, to enhance operational efficiency, particularly in loan management, collections, and field staff tracking.
- The company has shown steady growth in revenue, with operations increasing from Rs 25.03 crore in FY22 to Rs 63.22 crore in FY24.
- Profit after tax (PAT) has consistently improved, growing from Rs 4.14 crore in FY22 to Rs 13.45 crore in FY24, reflecting sound financial performance.
- The company offers a wide range of financial products, including loans to MSMEs, NBFCs, and corporates, as well as green financing solutions like electric vehicle financing, catering to diverse customer needs.
Challenges
- The company's operations are heavily reliant on securing equity and debt capital from external sources. Any inability to raise funds or repay its debt obligations, such as short-term and long-term borrowings totaling Rs 107.60 crore and Rs 73.68 crore, respectively, could negatively impact its financial stability.
- As an NBFC providing lending solutions, any deterioration in the credit quality of the loans issued by the company could have a detrimental effect on its business and financial health.
- The company's ability to assess creditworthiness relies heavily on the accuracy of the information provided by borrowers. Incomplete or misleading information could lead to poor credit decisions, adversely affecting the company’s operations.
- A significant portion of the company's revenue comes from a small group of customers. The top 10 customers accounted for 17.73% to 25.91% of revenue in recent years. Losing any of these customers or a reduction in business from them could negatively affect the company's financial performance.
- Usha Financial Services' revenue is highly concentrated in two states, Delhi and West Bengal. Any adverse developments or reduced demand in these regions could significantly impact the company’s operations and financial performance.
Financials
| Years | Total Assets | Share Capital | Profit After Tax | Consolidated Net Profit | Adjusted EPS |
|---|---|---|---|---|---|
| 2023 | 37,149.43 | 941.81 | 1,344.95 | 1,344.95 | 5.6472 |
| 2024 | 33,496.87 | 1,587.76 | 1,016.55 | 1,016.55 | 7.1957 |
| 2022 | 16,364.13 | 658.17 | 414.42 | 414.42 | 4.1977 |
