Nisus Finance IPO Opens Dec 4, Aims Rs 114 Crore
Nisus Finance IPO
Nisus Finance IPO: SME IPO of Rs 114 Crore to Open on December 4 – Complete Details, Including Price Band, Subscription Information, and Fund Utilization
The Nisus Finance Services IPO is set to open for subscription on December 4, 2024, with the company targeting a fundraising goal of Rs 114.24 crore through the public offering.
This IPO is offering investors an opportunity to buy shares at a price band of Rs 170-180 per share, making it an important investment opportunity in the rapidly growing SME segment.
This will be the first SME IPO of December 2024 and marks the 11th IPO of the year to raise more than Rs 100 crore.
The subscription window for the general public will remain open until December 6, 2024, giving retail and institutional investors ample time to participate.
In addition, the IPO will be available for anchor investors starting December 3, a day before the general subscription opens.
This article provides a comprehensive look at the Nisus Finance IPO, covering details such as the price band, subscription timeline, fund utilization, company overview, and key facts investors need to consider before participating in this offering.
Key Details of the Nisus Finance IPO
Nisus Finance’s IPO is a combination of a fresh issue and an Offer for Sale (OFS). The company plans to issue 56.45 lakh fresh equity shares worth approximately Rs 101.62 crore, and an additional 7 lakh shares will be sold via OFS for a value of Rs 12.61 crore.
The OFS component is aimed at reducing the promoters’ stake in the company, with Amit Anil Goenka, the company’s promoter, acting as the selling shareholder.
The price band for the IPO is set between Rs 170 and Rs 180 per share, which positions the company to attract both retail and institutional investors.
The IPO will be open to the general public from December 4 to December 6, 2024, giving investors three full days to subscribe to the issue.
The anchor investor portion will open on December 3, providing institutional investors an early opportunity to commit to the offering before the retail subscription period.
Once the subscription window closes, the shares are expected to be listed on the BSE and NSE on December 11, 2024, allowing investors to begin trading the stock on the secondary market.
This will be the first chance for the market to evaluate the company’s performance based on the demand during the IPO process and the post-IPO market sentiment.
Business Overview of Nisus Finance
Nisus Finance Services, founded by Amit Goenka and his wife Mridula Goenka, offers a broad range of financial services across the transaction advisory, real estate, and urban infrastructure funds sectors.
The company also operates a Non-Banking Financial Company (NBFC) subsidiary, Nisus Fincorp, which adds depth to its financial services portfolio.
Nisus Finance is involved in managing and advising clients on various real estate and infrastructure investment projects, making it a key player in the advisory and asset management spaces.
The company provides a diversified set of services, including:
- Transaction Advisory Services: Offering consulting services on mergers, acquisitions, and business restructuring for clients looking to optimize their portfolios.
- Real Estate and Urban Infrastructure Funds: Managing funds that focus on the growing real estate and urban infrastructure sectors, key growth drivers in emerging economies.
- Asset Management Services: Helping institutional and high-net-worth individuals (HNIs) to invest in diverse asset classes, managing risk, and optimizing returns.
Nisus Finance’s strong foothold in these high-growth sectors, paired with its global expansion strategy, positions it well for future growth.
The company’s expansion plans are largely centered around key financial markets such as GIFT City in Gandhinagar, DIFC Dubai, and FSC Mauritius, where it seeks to enhance its fund management capabilities.
Use of Funds from the Nisus Finance IPO
The funds raised from the IPO will be utilized for several key objectives that will strengthen the company’s infrastructure, expand its operations globally, and enhance its business model. The company has outlined the following primary uses for the proceeds:
- Expansion of Operations and Infrastructure: A significant portion of the funds will be dedicated to expanding Nisus Finance’s infrastructure in international financial hubs, including the International Financial Services Centre (IFSC) in GIFT City, Gandhinagar, DIFC in Dubai, and the Financial Services Centre (FSC) in Mauritius. This expansion will include acquiring the necessary licenses to operate in these jurisdictions and developing the fund management infrastructure to handle increased business operations effectively.
- Fundraising and Distribution Costs: The company also plans to allocate funds toward fundraising activities, including the distribution and placement fees. These will be paid to third-party distributors or agents in India and abroad to create the required capital pool for the company’s future projects. These activities are critical to the company’s long-term growth as they will help raise capital efficiently and ensure access to global investors.
- Capitalization of Subsidiary – Nisus Fincorp: Nisus Finance will also use part of the funds to increase the capital base of its subsidiary, Nisus Fincorp, which operates as a non-banking financial company (NBFC). This will help strengthen the company’s core lending and financial services operations, positioning it for future growth as the demand for NBFCs continues to rise in India.
- General Corporate Purposes: A portion of the proceeds will also be allocated for general corporate purposes, including working capital requirements and any other operational needs that may arise as the company grows its business.
The Role of Beeline Capital Advisors
The sole book-running lead manager for this IPO is Beeline Capital Advisors, a well-regarded financial services firm specializing in handling IPOs.
Beeline will manage the IPO process, ensuring all legal, financial, and regulatory requirements are met and that the IPO runs smoothly from start to finish.
Investors can expect a seamless experience as they participate in the offering, with Beeline providing the necessary oversight to ensure transparency and compliance.
Why Invest in Nisus Finance?
The Nisus Finance IPO represents a unique opportunity to invest in an SME company with a diverse set of operations across multiple high-growth sectors, including real estate, urban infrastructure, and financial services.
The company is expanding its operations globally, with a focus on building a strong presence in international financial markets. Moreover, its growing subsidiary, Nisus Fincorp, adds a layer of stability and diversification to its portfolio.
The IPO’s timing and offering size further enhance its appeal. With a price band set between Rs 170-180, investors have the chance to buy shares of a promising financial services player at an attractive valuation.
Given the strong demand for SME IPOs in India, this offering is expected to generate significant investor interest.
Final Remarks
The Nisus Finance Services IPO presents an exciting opportunity for investors looking to participate in the growth of an expanding financial services company.
With its diverse operations, strong expansion plans, and a focus on both the Indian and international markets, the company is well-positioned for long-term growth.
Interested investors have the chance to subscribe to the IPO between December 4 and December 6, 2024, with shares expected to be listed on the BSE and NSE on December 11.
Given its strategic growth plans and market positioning, Nisus Finance’s IPO is one to watch in the coming weeks.
