Promoters bought 4,80,800 shares: Board announces 1:1 bonus share; Script trades at low PE

On Tuesday, shares of Usha Financial Services Ltd plunged 3.64 per cent to Rs 78 per share from its previous closing of Rs 80.95 per share with an intraday high of Rs 84.55 and an intraday low of Rs 77.55. The stock’s 52-week high is Rs 168 per share and its 52-week low is Rs 48.65 per share.

Usha Financial Services Ltd. has approved increasing its Authorised Share Capital from Rs 26 crore to Rs 44 crore and issuing bonus shares in a 1:1 ratio. This means for every one existing equity share of Rs 10, one additional bonus equity share of Rs 10 will be issued, utilising the Securities Premium Account. As a result, the pre-bonus paid-up share capital of Rs 21,73,76,310 (2,17,37,631 Equity Shares) will double to Rs 43,47,52,620 (4,34,75,262 Equity Shares) post-bonus. The company plans to credit or dispatch these bonus shares by September 6, 2025.

Usha Financial Services Limited, incorporated in May 1995, operates as a non-banking finance company (NBFC) specializing in lending solutions. The company provides capital to a diverse client base, including other NBFCs for onward lending, corporates for working capital and MSMEs, with a particular focus on supporting small entrepreneurs, especially women. Additionally, Usha Financial Services has a dedicated emphasis on green financing, specifically in the area of electric vehicle and battery financing, promoting sustainable transportation solutions.

The promoters of the company bought 4,80,800 shares and increased their stake to 74.54 per cent compared to October 2024. The company has a market cap of Rs 170 crore. The shares of the company have a PE of 12.3x whereas the industry PE is 25.2x. The stock is up over 60 per cent from its 52-week low of Rs 48.65 per share.

Disclaimer: The article is for informational purposes only and not investment advice