Usha Financial Services shares debut at a 2% discount; stock hits lower circuit

SME IPO listing: Usha Financial Services share price debuted at ₹164 per share, a discount of 2.4 per cent with respect to the issue price of ₹168 per share. The stock further extended its losses and touched its lower circuit of ₹155.80. Around 10:20 am, the stock traded at ₹161 apiece.

Usha Financial Services IPO had a price band of ₹160 to ₹168 per share. The company aimed to raise ₹98.45 crore at the upper end of the price band. The offer was entirely a fresh issue of 58.6 lakh shares with no offer-for-sale (OFS) component.

The SME IPO, which opened for subscription on Thursday, October 24, and concluded on Monday, October 28, saw an overall subscription of about 19 times, with the retail segment subscribed nearly 21 times and the segment reserved for non-institutional buyers subscribed 29 times. The portion of qualified institutional buyers was subscribed 10 times.

Narnolia Financial Services and Unistone Capital Pvt Ltd were the book-running lead managers, while Skyline Financial Services was the registrar of the issue. The market maker for Usha Financial Services IPO was SS Corporate Securities.

Shares allotment for Usha Financial Services was finalised on Tuesday, October 29.

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The non-banking finance company (NBFC) has over nine years of experience. It provides lending solutions to NBFCs, MSMEs, corporations, and individuals, particularly to women entrepreneurs.

Meanwhile, Indian stock market benchmark Nifty 50 declined almost half a per cent in the morning session amid weak global cues. US election-related jitters, unimpressive Q2 numbers and sustained foreign capital outflow continue weighing on market sentiment.

Experts are positive about the prospects of the Indian market for the medium to long term, but they underscore that the stretched valuation of the market remains a concern.

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