Fusion Microfinance IPO opens for public subscription today; all you need to know
Fusion Microfinance offers financial services to women in rural and semi-rural areas in India. It is one of the youngest companies to get an NBFC-MFI license and among the top NBFC-MFIs in India in terms of Assets Under Management (AUM) as of 30 June.
Representational image. News18
The Initial Public Offering (IPO) of microlender Fusion Microfinance, backed by global private equity major Warburg Pincus, opens for subscription today, 2 November. The public issue will conclude on 4 November. Fusion. The Fusion Microfinance IPO consists of fresh issuance of equity shares worth Rs 600 crore and an offer of sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders. The price band for the IPO has been fixed at Rs 350 to Rs 368 per share with a face value Rs 10 each. Fusion Microfinance has reserved 50 percent of its public issue for qualified institutional buyers and 35 percent of shares for retail bidders. The remaining 15 percent of the shares have been reserved for non-institutional investors. Investors can bid in lots of 40 shares, or its multiples.
Those selling shares in the OFS are Global Financial Inclusion Fund, Devesh Sachdev (founder and chairman of the Fusion Microfinance), his wife Mini Sachdev, Honey Rose Investment and two funds of Creation Investments Fusion- Dutch impact investor Oikocredit, and Ecumenical Development Co-operative Society U.A.
Out of these, Honey Rose and Creation Investments are owned by Warburg Pincus which entered Fusion Microfinance in 2018 with a Rs 520 crore funding.
The proceeds from the IPO will be used by Fusion Microfinance to augment its capital base to meet future capital requirements. ICICI Securities, CLSA India, JM Financial and IIFL Securities are the book-running lead managers while Link Intime India Private Ltd is the registrar of the IPO.
Fusion Microfinance has 2.9 million active borrowers and a network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and UTs in India. Fusion Microfinance offers financial services to women in rural and semi-rural areas in India. It is one of the youngest companies to get an NBFC-MFI license and among the top NBFC-MFIs in India in terms of Assets Under Management (AUM) as of 30 June.
According to Religare Broking, the company follows well defined IT services since establishment. Their current platforms support paperless loan processing, mobile customer onboarding, real-time application tracking and credit checks, real time notifications, cloud computing, and more.
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