Usha Financial Services hits 5% lower circuit after making muted debut on NSE SME platform

Usha Financial Services Limited shares made a weak debut on the NSE SME platform Emerge on Thursday, October 31. The shares listed at ₹164 apiece were down 2.38% from the issue price of ₹168 apiece.

Soon after listing, the stock declined up to 5% to hit the lower circuit limit at ₹155.8 apiece on the NSE.

The retail investors, who were allotted at least one lot of 800 shares, would have incurred a loss of ₹3,200 (₹4 x 800) after the stock started trading on the NSE.

As many as 4.79 lakh company shares changed hands on the NSE after the stock began to trade. The company's total market capitalisation stood at ₹340.52 crore.

Usha Financial Services IPO details

Usha Financial Services IPO was worth ₹98.45 crore. The book-building issue consisted of only a fresh issuance of 58.6 lakh shares and there was no offer-for-sale (OFS). The price band for the issue was fixed at ₹160 to ₹168 per share.

The minimum application size for retail investors was at least a single lot, or 800 shares, aggregating to an investment of ₹1,34,400.

Usha Financial Services IPO was booked 19.44 times during the three-day subscription period from October 24 to October 28. Investors across categories placed bids for over 7.54 crore shares compared to the 38.78 lakh shares offered for subscription.

The non-institutional investors (NIIs) quota of Usha Financial Services IPO was booked 28.93 times, the retail investors’ category was subscribed 20.75 times, and the SME issue was booked 10.04 times in the Qualified Institutional Buyers (QIBs) category.

The company plans to use the money raised via the public issue to augment its capital base and use a portion of the IPO proceeds for general corporate purposes.

About Usha Financial Services

Usha Financial Services Limited was incorporated in May 1995. It’s a Non-Banking Finance Company (NBFC) that provides lending solutions to other NBFCs, corporates, MSMEs, and individuals. The company also provides Electric Vehicle (EV) financing services. As of October 2024, the NBFC had 43 employees.