Usha Financial Services IPO

Usha Financial Services Private Limited was incorporated on May 16, 1995, and transitioned to a public limited company, renamed Usha Financial Services Limited, on October 12, 2022.

The Non-Banking Financial Companies (NBFC) sector in India has experienced significant growth, reaching a market size of USD 326 billion in 2023, with a projected compound annual growth rate (CAGR) of 13-15% from 2023 to 2025. This growth is driven by digital transformation, favorable government policies, and increased credit access for underserved populations. The NBFC sector plays a crucial role in financial inclusion and economic development by providing lending solutions to MSMEs, corporates, and individual entrepreneurs, including women and electric vehicle financing.

Technological advancements enhance operational efficiency and risk management within the sector, allowing NBFCs to better assess credit risks and improve customer service. The future outlook for NBFCs remains positive, with opportunities for expansion and innovation expected to drive further growth in the industry.

Usha Financial Services IPO Strengths

• The company has a proven history of success and reliability in its operations.
• The experience of the promoters is effectively leveraged to guide strategic decisions.
• An experienced management team, supported by a motivated and efficient workforce, drives operational excellence.

Usha Financial Services IPO Risks

• The company requires substantial capital for operations, and disruptions in capital costs or availability could negatively impact business performance and cash flows.
• Deterioration in the credit quality of loans may adversely affect the company’s financial condition and operational results.
• Although consent has been sought from certain lenders for the Offer, some approvals remain pending. Failure to obtain these consents could necessitate changes to capital raising strategies and overall plans.