Usha Financial Services
Book Building issueSMENSE₹98.45 Cr issue
-2.38%
Listing gain over issue price
Issue size
₹98.45 Cr
1 lot at cut-off
₹1,34,400
Lot size
800shares
Open
24 Oct 2024
Close
28 Oct 2024
Allotment
29 Oct 2024
Listing
31 Oct 2024
Listing performance
Issue price
₹168
Listed at
₹164
Listing-day close
₹155.85
Latest price
₹49.50
Close on 23 Oct 2026
Listing gain
-2.38%
Return since issue
-41.07%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 Oct 2024 – 28 Oct 2024
- Listing date
- 31 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹168 per share
- Lot size
- 800 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹98.45 Cr
- Market cap at offer price
- ₹365 Cr
- Promoter holding
- 98.91% → 72.25% pre-issue → post-issue
- ISIN
- INE0LS001014
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Narnolia Financial Services Ltd.
- Registered office
- 330, Mezanine Floor Functional Industrial Estate, Patparganj, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 16,60,800 | — | — |
| Market maker | 3,20,800 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹168
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,34,400 |
| S-HNI (min) | 2 | 1,600 | ₹2,68,800 |
| S-HNI (max) | 7 | 5,600 | ₹9,40,800 |
| B-HNI (min) | 8 | 6,400 | ₹10,75,200 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
16,60,800
Anchor portion
₹27.90 Cr
at ₹168 per share
Valuation and performance
Valuation at offer price
₹168 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.47 | 9.28 |
| P/E (×) | 19.83 | 18.10 |
| Price to book (×) | 24.00 | — |
| Market cap | — | ₹365 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 9.29%
- ROCE
- 12.02%
- Debt / equity
- 1.70
- PAT margin
- 19.02%
- NAV per share
- ₹69.95
- Price to book
- 24.00
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Usha Financial Services
Usha Financial Services Limited (UFSL) is a non-banking finance company incorporated in 1995 and registered with the Reserve Bank of India as an NBFC-ICC (Investment & Credit) base layer non-systemically important non-deposit taking NBFC with over 9 years of lending experience. The company provides lending solutions to fellow NBFCs and corporates, MSMEs, and individuals, particularly targeting women entrepreneurs. Its services extend to electric vehicle (EV) financing. The company operates from its registered office in Delhi and has presence across India, with major revenue contributions from Delhi and West Bengal. As of September 30, 2024, the company reported revenue from operations of Rs. 2,651.14 lakhs and profit after tax of Rs. 504.16 lakhs.
Company Analysis
from RHPUsha Financial Services Limited is a non-banking finance company providing lending solutions to NBFCs, corporates, MSMEs, and individuals, with a focus on women entrepreneurs and electric vehicle financing.
Usha Financial Services Limited (UFSL) is a non-banking finance company incorporated in 1995 and registered with the Reserve Bank of India as an NBFC-ICC (Investment & Credit) base layer non-systemically important non-deposit taking NBFC with over 9 years of lending experience. The company provides lending solutions to fellow NBFCs and corporates, MSMEs, and individuals, particularly targeting women entrepreneurs. Its services extend to electric vehicle (EV) financing. The company operates from its registered office in Delhi and has presence across India, with major revenue contributions from Delhi and West Bengal. As of September 30, 2024, the company reported revenue from operations of Rs. 2,651.14 lakhs and profit after tax of Rs. 504.16 lakhs.
Non-Banking Finance (NBFC)Financial ServicesLendingElectric Vehicle Financing
Objects of the Issue
- Augment the capital base of our Company Rs. 7,000.00 Lakhs p.27
- General Corporate Purposes p.27
- Augment the capital base of our Company Rs. 7,000.00 Lakhs p.106
- General Corporate Purposes [●] p.110
- Issue Expenses [●] p.111
- —
Issue Structure
- Total Issue
- 58,60,000 Equity Shares aggregating to Rs. [●] Lakhs
- Fresh Issue
- 58,60,000 Equity Shares of face value of Rs.10/- each
- Offer for Sale
- NIL
- Price Band
- Floor Price: Rs. 160 per Equity Share; Cap Price: Rs. 168 per Equity Share
- Lot Size
- 800 Equity Shares (Bid Lot)
- Face Value
- Rs. 10/- per Equity Share
Business Model
The company earns revenue primarily through interest income on loans provided to various customer segments including NBFCs and corporates, MSMEs, and individuals. It provides a diversified range of financial products to these customer categories. The company also generates revenue from portfolio management services which constituted 9.66% of revenue from operations as of September 30, 2024.
Business Segments
Provides lending solutions to fellow NBFCs and corporate entities
Provides lending solutions to Micro, Small and Medium Enterprises
Provides electric vehicle financing and other green financing solutions
Provides lending solutions to individual borrowers, particularly women entrepreneurs
Retail and small and medium enterprise lending to small business owners and individuals
Financing for electric vehicles and green energy initiatives
Lending to other non-banking financial companies and institutional borrowers
Lending to corporate non-financial entities
Providing capital to NBFCs for onward lending and working capital needs and to Body corporates. Involves secured loans with rigorous due diligence and typically spans 12 to 36 months tenure.
Special focus on electric vehicle and battery financing to promote sustainable transportation solutions. Provides financing for three-wheeler passenger electric vehicles and electric vehicle batteries through authorized dealers, with typical loan tenure of 6 to 24 months.
Financial assistance tailored for small and medium enterprises to support growth and development, mainly to women entrepreneurs. Extends secured loans for business purposes to small and medium size enterprises, including businessmen, traders and manufacturers through business partners located across 20 states in India. Typical loan tenure ranges from 6 to 24 months.
Provides lending solutions to fellow NBFCs and corporate borrowers
Provides lending solutions to Micro, Small and Medium Enterprises
Provides lending solutions to individuals, particularly women entrepreneurs
Extends services to Electric vehicle (EV) financing
Lending and financing activities to individuals and businesses, generating interest income on loans disbursed
Fees charged for loan processing and other ancillary financial services
SWOT Analysis
Strengths
- • Strong capital adequacy position supporting future growth(p.107)
- • Expanding loan portfolio across multiple geographies and sectors(p.109)
- • Improved profitability with PAT of Rs. 1,344.95 Lakhs in FY2024(p.117)
- • Experienced and diversified management team(p.114)
- • Experienced management team with 25+ years collective experience in NBFC sector(p.164)
- • Established business partner network across 13 NBFCs and entities for retail lending expansion(p.164)
- • Robust risk management and underwriting processes with comprehensive customer due diligence(p.164)
- • Presence across 19 states through geographically diverse distribution network(p.167)
- • Strong capital adequacy ratio of 33.03% demonstrating solid financial position(p.151)
- • Diversified lending portfolio across wholesale and retail segments including emerging green financing(p.150)
- • Registered NBFC with 9+ years of lending experience(p.297)
- • Diversified lending portfolio across multiple customer segments(p.297)
- • Strong profitability with 18.80% net profit margin in stub period(p.300)
- • Experienced management team with 13+ years in financial markets(p.216)
- • Strong revenue growth with 38.48% YoY increase in total income(p.303)
- • Achieved and maintained AUM of 300+ crores in FY24 with average AUM of 326 crores(p.304)
- • Improved PAT margin from 16.37% in FY22 to 21.03% in FY23(p.311)
- • Controlled employee costs as percentage of revenue decreased from 9.08% to 5.41%(p.311)
- • Significantly improved credit underwriting and lower provisioning costs(p.311)
Weaknesses
- • Rising gross NPA ratio indicating asset quality deterioration(p.117)
- • High finance costs impacting profitability(p.66)
- • Significant debt-to-net-worth ratio limiting financial flexibility(p.117)
- • Inconsistent revenue and AUM performance over recent years(p.108)
- • Rising gross NPA ratio from 1.91% in FY23 to 3.96% in September 2024(p.153)
- • Significant AUM decline of 14.18% in FY24 after 135.90% growth in FY23(p.151)
- • High debt-to-equity ratio of 1.71 indicating significant leverage(p.151)
- • Heavy dependence on wholesale lending (59.53% of revenue in Sep 2024) from fellow NBFCs and corporates(p.166)
- • Reliance on business partners for MSME portfolio generation and EMI collections with 100% repayment guarantee dependency(p.157)
- • CSR expenditure shortfall of Rs. 12.92 lakhs in September 2024 period(p.171)
- • High leverage with debt-to-equity ratio of 1.70(p.295)
- • Increasing Non-Performing Assets ratio of 3.96% as of Sept 30, 2024(p.283)
- • Significant provision requirements with 11.80% of income allocated to provisions(p.300)
- • Finance costs consuming 41.07% of total income(p.300)
- • Concentration of promoter shareholding at 62.36%(p.266)
- • Limited disclosure on pending CSR commitments of Rs. 12.92 lakhs(p.283)
- • High dependence on debt financing with substantial finance costs(p.312)
- • Concentrated borrowing from multiple lenders with varying interest rates(p.314)
- • Significant tax liability disputes and outstanding income tax demands(p.360)
- • Multiple pending income tax assessments and penalty proceedings against promoter Rajesh Gupta(p.361)
- • Large number of criminal litigation cases for loan recovery through Section 138 of NI Act(p.331)
Opportunities
- • Rapidly growing NBFC sector with 25.8% YoY growth in 2024(p.130)
- • Financial inclusion expansion in underserved rural and semi-urban markets(p.107)
- • Green financing segment showing strong growth potential(p.110)
- • Projected NBFC sector CAGR of 13-15% through 2025(p.131)
- • Green financing expansion including EV and battery financing with growing sustainability focus(p.145)
- • Co-lending models with banks to expand credit flow to underserved sectors(p.145)
- • Expansion into underserved rural and semi-urban markets through business partners(p.145)
- • Digital transformation and technology adoption to enhance customer experience and loan processing(p.146)
- • ESG compliance and green financing products attracting new investment and growth opportunities(p.146)
- • Expansion of insurance and wealth management services targeting middle class segments(p.146)
- • Expansion into Electric Vehicle financing segment(p.297)
- • Focus on women entrepreneurs as key customer segment(p.297)
- • Growing corporate and NBFC lending market(p.297)
- • Established regulatory framework as registered NBFC-ICC providing credibility(p.297)
- • Significant expansion of AUM with planned increased disbursement of loans(p.304)
- • Demonstrated ability to scale business with consistent revenue growth trajectory(p.303)
- • Access to diverse funding sources including banks, NBFCs, NCDs and intercorporate deposits(p.307)
Threats
- • Intense competition from larger established NBFCs and fintech disruptors(p.133)
- • Regulatory compliance costs and evolving regulatory requirements(p.142)
- • High cost of borrowing impacting loan pricing competitiveness(p.132)
- • Economic volatility and recessionary risks affecting credit demand(p.128)
- • Intense competition from banks and fintech companies for NBFC market share(p.144)
- • Dependency on wholesale funding sources more susceptible to market fluctuations(p.144)
- • Increased regulatory scrutiny and tightening RBI norms for risk management and capital adequacy(p.144)
- • Rising NPA challenges and deteriorating asset quality across the NBFC sector(p.144)
- • Cybersecurity threats and data breach risks from rapid digitization of operations(p.144)
- • Liquidity constraints from asset-liability maturity mismatch risks(p.144)
- • Rising Non-Performing Assets indicating credit quality deterioration(p.283)
- • Interest rate risk impacting finance costs and profitability(p.281)
- • Regulatory changes affecting NBFC operations and lending practices(p.299)
- • Volatile capital market conditions affecting portfolio performance(p.299)
- • Competitive pressure from other NBFCs and financial institutions(p.299)
- • Rising borrowing costs and competitive interest rate environment(p.312)
- • Regulatory scrutiny and potential changes in non-banking financial company regulations(p.314)
- • Risk of loan defaults and credit losses impacting profitability(p.306)
- • Tax regulatory risks with ongoing income tax assessments and potential adverse outcomes(p.330)
- • Potential impact from litigation and loan recovery challenges(p.332)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rajesh Gupta | Promoter | 25.80% | 18.85% |
| Mr. Anoop Garg | Promoter | 17.20% | 12.56% |
| Ms. Geeta Goswami | Promoter | 1.32% | 0.96% |
| Ms. Nupur Gupta | Promoter | 0.15% | 0.11% |
| M/s BR Hands Investments Private Limited | Promoter | 17.89% | 13.07% |
| Rajesh Gupta | Promoter | 25.80% | 18.85% |
| Anoop Garg | Promoter | 17.20% | 12.56% |
| Geeta Goswami | Promoter | 1.32% | 0.96% |
| Nupur Gupta | Promoter | 0.15% | 0.11% |
| BR Hands Investment private limited | Promoter | 17.89% | 13.07% |
| Mr. Rajesh Gupta | Promoter and Managing Director | 25.80% | — |
| Mr. Anoop Garg | Promoter and Executive Director | 17.20% | — |
| Ms. Geeta Goswami | Promoter and Executive Director | 1.32% | — |
| Ms. Nupur Gupta | Promoter & Non-executive Director | 0.15% | — |
| BR Hands Investments Private Limited | Promoter Group Entity | — | — |
| Rajesh Gupta | Individual Promoter | 25.80% | — |
| Anoop Garg | Individual Promoter | 17.20% | — |
| Geeta Goswami | Individual Promoter | 1.32% | — |
| Nupur Gupta | Individual Promoter | 0.15% | — |
| BR Hands Investments Private Limited | Corporate Promoter | 17.89% | — |
| Rajesh Gupta | Promoter | — | — |
| Anoop Garg | Promoter | — | — |
| Geeta Goswami | Promoter | — | — |
Leadership
Ms. Kritika Goswami · Company Secretary and Compliance Officer
Mr. Prashant Raghuwanshi · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Usha Financial Services IPO FAQs
What is the lot size of Usha Financial Services IPO?
The minimum lot size of Usha Financial Services IPO is 800 shares. One lot costs ₹1,34,400 at the cut-off price.
When does Usha Financial Services IPO open and close?
Usha Financial Services IPO opened for subscription on 24 Oct 2024 and closed on 28 Oct 2024.
What is the listing date of Usha Financial Services IPO?
Usha Financial Services IPO listed on 31 Oct 2024.