Usha Financial Services Pvt Ltd

Usha Financial Services Pvt Ltd is launching an SME IPO worth Rs. 98.45 crore, with the issue opening from October 24 to October 28, 2024. Established in May 1995, the company operates as a non-banking financial institution (NBFC), providing a variety of lending solutions to MSMEs, corporates, individuals, and other NBFCs. It also focuses on loans for women entrepreneurs and financing electric vehicles (EVs).

With a net worth of Rs. 10,602.63 lakh and an asset base of Rs. 30,695.76 lakh, Usha Financial Services operates through two main business models: retail and wholesale lending. The company’s key product offerings include corporate loans, NBFC loans, MSME loans, and green financing for electric vehicles.

The IPO involves the fresh issuance of 58.6 lakh shares, with a price range of Rs. 160 to Rs. 168 per share. The expected listing date is October 31, 2024, on the NSE and SME platforms.

Financial Overview

For the fiscal years ending March 2023 and March 2024, Usha Financial Services reported significant growth. Revenue increased by 38%, while PAT grew by 32%. As of September 2024, the company’s assets stand at Rs. 35,133.66 lakh, and its PAT is Rs. 504.16 lakh.

Key Objectives of the IPO

• Enhance the company’s capital base.

• General corporate purposes.

Strengths & Risks

The  Usha Financial Services limited IPO’s strengths include the company’s strong record, experienced management, and focus on key growth sectors like green financing and MSMEs. However, risks include high capital dependency and potential challenges in managing loan quality.

Usha Financial Services IPO Details

• Price Band: Rs. 160 – Rs. 168 per share

• Lot Size: 800 shares

• Listing Date: October 31, 2024

Investors looking for exposure to a growing NBFC with a focus on sustainable financing may find this IPO appealing.