The shares of Usha Financial Services debuted on Thursday, October 31, on the NSE SME platform Emerge with a shaky listing. From the issue price of Rs 168 per share, the shares listed at Rs 164 per share were down 2.38 per cent.
The stock fell as much as 5 per cent shortly after listing, hitting the NSE's lower circuit filter limit at Rs 155.8 per share.
Total loss incurred after listing
Once the stock began trading on the NSE, the retail investors, who were given at least one lot of 800 shares, would have lost Rs 3,200 (Rs 4 x 800).
After the stock started trading, up to 4.79 lakh company shares were exchanged on the NSE. The total market value of the company was Rs 340.52 crore.
Usha financial service IPO subscription
During the three-day subscription period from October 24 to October 28, 19.44 times reservations were made for Usha Financial Services' initial public offering. In contrast to the 38.78 lakh shares available for subscription, bids were made for over 7.54 crore shares by investors in various categories.
In the Usha Financial Services IPO, the retail investor category was subscribed to 20.75 times, the SME issue was booked 10.04 times in the Qualified Institutional Buyers (QIBs) category, and the non-institutional investors (NIIs) quota was booked 28.93 times.
IPO Size and minimum bid
The IPO value of Usha Financial Services was Rs 98.45 crore. There was no offer-for-sale (OFS), and the book-building issue only involved the new issuance of 58.6 lakh shares. The issue's price range was set between Rs 160 and Rs 168 per share.
Retail investors were required to submit applications with a minimum of one lot, comprising of 800 shares, totalling Rs 1,34,400.
Use of IPO proceeds
The company intends to use some of the IPO proceeds for general corporate purposes and use the funds raised through the public offering to increase its capital base.
