Fusion Micro Finance files DRHP with Sebi to raise funds via IPO
Premium- The IPO consists of a fresh issue of Rs600 crore and an offer for sale of upto 21.97 million shares by its existing shareholders and promoters
Fusion Micro Finance Ltd has filed a draft red herring prospectus with Securities Exchange Board of India to raise funds via initial public offering.
The IPO consists of a fresh issue of ₹600 crore and an offer for sale of upto 21.97 million shares by its existing shareholders and promoters.
The OFS comprises upto 1.3 mln equity shares by Devesh Sachdev, upto 2 lakh shares by Mini Sachdev, upto 6.32 mln by Honey Rose Investment, upto 4 mln shares by Creation Investments Fusion LLC, upto 6.61 mln shares by Oikocredit Ecumenical Development Co-operative Society UA and upto 3.54 mln shares by Global Financial Inclusion Fund.
ICICI Securities, CLSA India, IIFL Securities, JM Financial are the lead managers to the issue.
The proceeds from the issue will be used towards augmenting its capital base to meet future capital requirements, the lender said in its DRHP. As of March 2021, its CRAR was 27.26% of which tier 1 was 25.52%.
For FY21, its net interest income was at ₹430.89 crore versus ₹312.30 crore a year ago. Net profit for the period stood at ₹43.94 crore against ₹69.61 crore last year. Its gross NPA ratio was at 5.51% versus 1.12% a year ago.
The lender provides financial services to unserved and underserved women in rural and peri-rural areas across India. For FY21, its asset under management was at ₹46.38 billion. It has 2.12 million active borrowers with a network of 725 branches and 6,351 permanent employees spread across 326 districts and 18 states and union territories in India.
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