The eagerly awaited Nisus Finance Services SME IPO opens for bidding on December 4, 2024. With a blend of fresh equity shares and an offer-for-sale (OFS), this IPO is poised to attract investors eyeing the growing financial services sector.
In this article, we’ll provide all the essential details, including the price band, lot sizes, and what makes this IPO a noteworthy investment opportunity.
About Nisus Finance Services Co.
Founded in 2013, Nisus Finance Services operates in two core segments:
- Transaction Advisory Services
- Fund and Asset Management
The company offers private equity, venture debt, and capital solutions, catering to a diverse range of corporate clients. As of FY24, Nisus Finance had assets under management (AUM) of Rs 1,000 crore in real estate and urban infrastructure, cementing its position in the financial sector.
IPO Details: Key Highlights
- IPO Structure
- Fresh Issue: 56,45,600 equity shares amounting to Rs 101.62 crore.
- Offer-for-Sale (OFS): Up to 7,00,800 equity shares valued at Rs 12.61 crore.
- Price Band and Lot Size
- Price band: Rs 170-180 per share.
- Minimum lot size: 800 equity shares.
- Retail investors: Can apply for a single lot valued at Rs 1,44,000 (upper band).
- Non-retail investors: Minimum of two lots (1,600 shares) worth Rs 2,88,000 (upper band).
- Important Dates
- Issue Opens: December 4, 2024
- Issue Closes: December 6, 2024
- Listing Date: December 11, 2024 (tentative)
- IPO Objectives
- Fund growth initiatives in transaction advisory and fund management.
- Expand the company’s client base in urban infrastructure and real estate.
Investment Allotments
| Investor Category | Percentage Allocation |
|---|---|
| Qualified Institutional Buyers (QIBs) | 50% |
| Non-Institutional Investors (NIIs) | 15% |
| Retail Investors | 35% |
The company has also reserved 3,51,200 equity shares for market makers to ensure liquidity post-listing.
Company Financials: A Snapshot
| Financial Metric | FY23-24 | Q1 FY24-25 |
|---|---|---|
| Revenue | Rs 42.25 crore | Rs 15.01 crore |
| Net Profit | Rs 23.05 crore | Rs 8.36 crore |
| Assets Under Management (AUM) | Rs 1,000 crore | – |
| Market Capitalization | Rs 430 crore | – |
The company’s profitability and stable revenue growth indicate robust financial health, making this IPO an attractive investment.
What Sets This IPO Apart?
- Focus on Niche Segments
- Specialization in real estate and urban infrastructure gives Nisus Finance a competitive edge in fund management.
- High Growth Potential
- The company’s strategic focus on urban development aligns with India’s expanding infrastructure projects, creating long-term growth opportunities.
- Attractive GMP
- The grey market premium (GMP) is Rs 50 per share, suggesting potential listing gains of up to 28% at the upper price band.
Potential Risks for Investors
- Sector-Specific Dependency: Heavy reliance on real estate and urban infrastructure could pose risks during market downturns.
- Competitive Landscape: Increased competition in financial services may affect profit margins.
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How to Apply for the IPO
- Log in to your Demat account or IPO portal.
- Select Nisus Finance Services IPO from the ongoing IPO list.
- Choose the number of lots you wish to apply for and confirm your bid.
- Ensure sufficient funds are available in your linked bank account for ASBA (Application Supported by Blocked Amount).
Conclusion
The Nisus Finance Services SME IPO offers investors a chance to participate in India’s growing financial services sector. With promising financials and a focused business model, it has the potential to deliver significant returns. However, investors should carefully assess the risks before making a decision.
Disclaimer:
This article is for informational purposes only and should not be considered financial advice. Consult your financial advisor before investing in IPOs or any other securities.