Nisus Finance IPO Listing: Stock lists at 25% premium on BSE SME
Nisus Finance IPO Listing
Nisus Finance Services IPO: A Stellar Market Debut with 31.25% Listing Gain
Nisus Finance Services, a prominent financial services provider, made a strong market debut today, after its Initial Public Offering (IPO) raised ₹114.24 crore.
The IPO, which was open for subscription between December 4 and December 6, 2023, was listed on the BSE SME platform today, and investors were quick to respond positively to the company’s shares.
The stock opened at ₹225, which was 25% higher than the issue price of ₹180, providing a quick gain for investors.
The stock further surged, hitting the upper circuit limit of ₹236.25, offering 31.25% listing gains to those who subscribed to the offering.
This robust listing indicates strong investor interest in Nisus Finance Services, which provides a range of financial services, including transaction advisory, fund and asset management, and private equity solutions.
The company’s business model, coupled with its significant growth trajectory, contributed to the overall positive sentiment surrounding its IPO debut.
Subscription Response and Oversubscription:
Despite a mixed response from investors across different categories, Nisus Finance Services’ IPO saw an overwhelming level of oversubscription, underscoring the market’s confidence in the company’s growth potential.
The overall IPO was subscribed 192.29 times, reflecting significant interest, especially in certain investor segments:
- Qualified Institutional Buyers (QIBs): The portion reserved for QIBs was subscribed 93.84 times, showing strong interest from institutional investors.
- Non-Institutional Investors (NIIs): The NII segment saw an impressive subscription of 451.21 times, indicating the high demand from high-net-worth individuals (HNIs) and other large investors.
- Retail Investors: The portion allocated to retail investors was subscribed 139.78 times, highlighting robust participation from individual investors looking to capitalize on the potential of Nisus Finance Services.
- Employees: The employee category, however, saw a lackluster response, with only 0.90 times of the allocated portion being subscribed, indicating a relatively tepid demand from internal stakeholders.
While the overall subscription was highly positive, the relatively low subscription in the employee category raises some questions about internal enthusiasm or engagement with the IPO.
Nonetheless, the strong response from QIBs, NIIs, and retail investors points to a promising market outlook for the company.
Issue Details and Pricing:
The Nisus Finance Services IPO was priced at ₹180 per share, with the company issuing new equity shares worth ₹101.62 crore under the offer.
Additionally, 7,00,800 existing shares, with a face value of ₹10 each, were sold by existing shareholders through the Offer for Sale (OFS) route.
This portion of the offering allowed shareholders to exit partially or fully, and the proceeds from this sale will go to the selling shareholders rather than the company.
The funds raised from the issue of new shares will be deployed towards key strategic initiatives, including expanding the company’s operations and infrastructure, and supporting its overall growth.
The company also plans to bolster its presence in international markets, specifically in the IFC GIFT City (Gandhinagar), DIFC-Dubai (UAE), and FSC-Mauritius.
Use of Proceeds from the IPO:
Nisus Finance Services has laid out a comprehensive plan for utilizing the funds raised through its IPO:
- Expansion of Global Presence: A significant portion of the funds will be allocated for expanding Nisus Finance Services’ operations in international financial centers, including IFC GIFT City in Gandhinagar, DIFC in Dubai, and the FSC in Mauritius. These international markets offer immense growth opportunities, and the expansion will help the company tap into new clientele and increase its service offerings globally.
- Infrastructure and Licenses: The company will use part of the proceeds to acquire additional licenses and enhance its facility management and fund management infrastructure. This would allow Nisus Finance Services to better serve its growing client base and expand its operations more efficiently.
- Investment in Subsidiary: Another key area of investment will be the infusion of capital into its RBI-registered subsidiary, Nisus Fincorp, which is expected to strengthen its capital base. The growth of this subsidiary is critical to Nisus Finance’s overall strategy, particularly in expanding its private equity and venture debt offerings.
- Fund Pool Development: A portion of the funds will also be used to establish a fund pool, which is a key part of the company’s plans to provide additional capital to its fund management and advisory services.
- General Corporate Purposes: Finally, the company plans to use a portion of the proceeds for general corporate purposes, which may include working capital requirements and other day-to-day business needs.
Nisus Finance Services: A Rapidly Growing Company
Founded in 2013, Nisus Finance Services has quickly established itself as a key player in the Indian financial services industry.
The company offers a wide range of services, including transaction advisory, fund and asset management, private equity, and venture debt solutions, catering primarily to corporate clients.
Over the years, it has developed a strong reputation for its innovative financial solutions, backed by a highly experienced management team and strong market presence.
The company’s financial performance has been impressive, showcasing its growth potential. In FY 2022, Nisus Finance reported a net profit of ₹1.29 crore, which grew to ₹3.02 crore in FY 2023.
In FY 2024, the company saw a significant jump in profitability, reaching ₹23.05 crore, a clear indication of its accelerated growth trajectory.
During this period, its revenue grew at a Compound Annual Growth Rate (CAGR) of more than 137%, reaching ₹42.25 crore in FY 2024.
Furthermore, in the first quarter of FY 2024-25, Nisus Finance Services reported a net profit of ₹8.36 crore and a revenue of ₹15 crore, further reinforcing the company’s ability to scale and generate value for its investors.
Final Remarks:
The Nisus Finance Services IPO marks a significant milestone for the company, as it transitions into a publicly listed entity.
The IPO’s successful debut, marked by a 25% opening gain and a 31.25% increase after hitting the upper circuit limit, showcases strong market confidence in the company’s future prospects.
While the subscription levels were mixed, the overwhelming demand in certain investor categories, especially QIBs and NIIs, reflects the strong growth potential and strategic positioning of the company.
With a strong financial track record, ambitious growth plans, and a diversified service portfolio, Nisus Finance Services is well-positioned to capitalize on the opportunities in the Indian and international financial markets.
Investors who participated in the IPO are already reaping significant rewards, and the company’s future looks promising as it continues to strengthen its market presence and expand its operations across key global financial hubs.
