Nisus Finance Services Co. Ltd. (NFSCL), operating under the NiFCO brand, has carved a niche in the financial services sector. The company focuses on Transaction (JO:TCPJ) Advisory Services and Fund & Asset Management, alongside its subsidiaries and associates. Over the years, NFSCL has diversified into real estate and urban infrastructure fund management while establishing a Non-Banking Financial Company (NBFC).
Through subsidiaries like Nisus Fincorp and associates such as Dalmia Nisus Finance, NFSCL provides end-to-end investment solutions, ensuring synergies across its business verticals. Its advisory services cater to developer partners, crafting strategies aligned with long-term business plans. One of its schemes, Real Estate Special Opportunities Fund - I, received a high-grade rating from CareEdge, reflecting its excellence in investment processes.
IPO Snapshot
NFSCL is launching its maiden book-building IPO from December 4 to 6, 2024, offering 6,346,400 equity shares in a price band of INR 170-INR 180 per share, aiming to raise INR 114.23 crore.
The IPO includes a fresh issue of 5,645,600 shares worth INR 101.62 crore and an Offer for Sale (OFS) of 700,800 shares totaling INR 12.61 crore. The minimum application is for 800 shares. Post-allotment, the stock will list on the BSE SME platform, representing 26.58% of the post-IPO paid-up capital.
The funds raised will be allocated to various purposes:
- INR 12.46 crore for fund setup and infrastructure.
- INR 35.91 crore for distribution and placement fees.
- INR 25 crore for investment in Nisus Fincorp.
- The remainder is for general corporate purposes.
Financial Highlights
NFSCL has demonstrated a remarkable turnaround in its financials. From FY22 to FY24, revenue soared from INR 7.50 crore to INR 42.25 crore, while net profit jumped from INR 1.29 crore to INR 23.05 crore. Q1 FY25 saw further growth, with INR 15.01 crore in revenue and a net profit of INR 8.36 crore.
The company’s profitability metrics have also surged, with net profit margins improving from 17.75% in FY22 to 61.19% in Q1 FY25. Its P/E ratio, based on FY24 earnings, is 18.65, making the IPO appear fully priced.
Investment Outlook
While the recent financial performance raises questions about sustainability, NFSCL’s unique positioning in transaction advisory and fund management offers significant potential. The IPO may attract investors seeking medium- to long-term gains, especially given its high-margin business segments and potential post-listing momentum.
Investors looking for niche opportunities in a growing market may find NFSCL an interesting addition to their portfolios.
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