The ₹114.24-crore Nisus Finance Services IPO has seen strong investor participation since it opened for bidding on Wednesday. On Day 1, the IPO was fully subscribed within hours, with the overall subscription reaching 3.13 times by the end of the day.
The momentum continued into Day 2, with the subscription rising to 7.08 times by 11 AM. Retail investors accounted for a significant portion of the demand, subscribing 10.48 times their allotted shares. This early response highlights investor interest in the company, offering shares in a price band of ₹170 to ₹180 each, with a minimum lot size of 800 shares. Let’s explore in detail what the Nisus Finance IPO has to offer.
Nisus Finance IPO Details:
The ₹114.24-crore Nisus Finance Services IPO opened for bidding on Wednesday and quickly gained attention, achieving full subscription on its first day. The SME IPO includes a fresh issue of 56.46 lakh shares, raising ₹101.62 crore, with an offer-for-sale (OFS) of 7.01 lakh shares valued at ₹12.61 crore. The price band has been set between ₹170 and ₹180 per share, with investors required to apply for a minimum lot size of 800 shares, translating to a minimum investment of ₹1,44,000.
| Offer Price | ₹170 to ₹180 per share |
| Face Value | ₹10 per share |
| Opening Date | 4 December 2024 |
| Closing Date | 6 December 2024 |
| Total Issue Size (in Shares) | 6,346,400 |
| Total Issue Size (in ₹) | ₹114.24 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 800 Shares |
| Listing at | BSE, SME |
Key milestones in the IPO timeline include finalizing share allotment status by December 9, refunding non-allottees on December 10, and listing on the BSE SME platform on December 11.
Subscription Status
On its opening day, the IPO achieved a subscription rate of 3.13 times, with bids for 1,31,44,800 shares against the 42,05,600 shares on offer. Retail investors showed significant enthusiasm, contributing a subscription rate of 10.48 times. By 11 AM on Day 2, the IPO had garnered an overall subscription of 7.08 times, indicating strong market interest.
| Investor Category | Subscription (times) on Day 1 | Subscription (times) on Day 2, till 11 AM |
| Qualified Institutions | 2.89 | 2.89 |
| Non-Institutional Buyers*** | 2.22 | 4.9 |
| Retail Investors | 3.75 | 10.48 |
| Employees | 0.1 | 0.13 |
| Total | 3.16 | 7.08 |
GMP (Grey Market Premium)
The current GMP for the Nisus Finance Services IPO is ₹55 (as of December 5, 2024, 9:59 AM). Based on the upper price band of ₹180, the estimated listing price is ₹235, reflecting a 30.56% gain per share.
Objectives of the IPO
The company plans to utilize the net proceeds from the IPO for:
- Infrastructure Expansion:
- Setting up operations in IFSC-Gift City (India), DIFC-Dubai (UAE), and FSC-Mauritius.
- Distribution and Fundraising:
- Covering distribution and placement costs for fund creation in Indian and international markets.
- Capital Augmentation:
- Strengthening the capital base of its associate company, Nisus Fincorp Private Limited (an RBI-registered NBFC).
- General Corporate Purposes:
- Supporting operational and expansion needs.
Company Overview
Nisus Finance Services Co. Limited, headquartered in India, was established in 2013. Operating under the ‘Nisus Finance Group’/’NiFCO’ brand, the company offers:
- Transaction Advisory Services.
- Real Estate and Urban Infrastructure Fund Management: Through subsidiaries like Nisus Finance & Investment Managers LLP and Nisus Finance International Advisors IFSC LLP.
- Financing: Via its NBFC subsidiary, Nisus Fincorp Private.
The company has a diversified operational framework, engaging in asset management and financing across multiple geographies, including India, Dubai, and Mauritius.
Financial Strength
Nisus Finance Services demonstrated an improved growth:
- Revenue Growth: Increased by 266.16% between FY23 and FY24.
- Profit After Tax (PAT): Achieved a staggering 663.29% growth over the same period.
This financial momentum underscores the company’s ability to capitalize on its transaction advisory and financing niche.
SWOT Analysis of Nisus Finance Services
| STRENGTHS | WEAKNESSES |
| Diversified Portfolio: Engaged in advisory services, asset management, and financing. Geographical Reach: Operations in India and international financial hubs. Robust Financial Growth: Consistent revenue and PAT increases signal strong market positioning. | High Dependency on Real Estate: The company’s significant exposure to the real estate sector makes it vulnerable to market fluctuations. Limited Brand Recognition: As a relatively new player, it may face challenges in competing with established financial giants. |
| OPPORTUNITIES | THREATS |
Government Initiatives: Benefiting from policies like “Atmanirbhar Bharat” promoting self-reliance. Global Expansion: Strategic presence in international financial centers opens up avenues for foreign investments. | Regulatory Risks: Changes in financial and real estate regulations could impact operations. Market Competition: Intense competition from other NBFCs and financial service providers. |
Final Thoughts
The ₹114.24-crore Nisus Finance Services IPO has demonstrated a promising start, reflecting investor confidence in its growth story and expansion plans. With a clear focus on leveraging technology, strengthening its capital base, and exploring international markets, the company is positioning itself for long-term success.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
