Fusion Micro Finance IPO: Public issue opens on 2 November; key things to know

The Initial Public Offering (IPO) of microlender Fusion Micro Finance will open for subscription on Wednesday, 2 November and conclude on Friday, 4 November. The Fusion Micro Finance IPO has a 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 IPO is backed by global private equity major, Warburg Pincus. Devesh Sachdev, Honey Rose Investment Ltd, Mini Sachdev, Creation Investments Fusion, Oikocredit Ecumenical Development Co-operative Society U.A, and Global Financial Inclusion Fund are among those who are selling shares in the OFS. The share allotment of the IPO is likely to occur on 10 November. The company’s shares are likely to list on the NSE and BSE on 15 November. Fusion Micro Finance, in its draft papers, stated that it aims to use the net proceeds from the fresh issue to augment its capital base to meet future requirements. The shares of the non-banking finance company (NBFC) are priced at Rs 350-368 apiece. Investors can bid for lots of 40 shares, or its multiples. The company has reserved 50 per cent of its public issue for qualified institutional buyers, whereas 35 per cent of shares have been allocated to retail bidders. Non-institutional investors can bid for the remaining 15 per cent of shares. ICICI Securities, JM Financial, CLSA India, and IIFL Securities are the book-running lead managers to the issue. Link Intime India Private Ltd is the registrar of the Fusion Micro Finance IPO. Fusion Micro Finance is headquartered in New Delhi. It offers financial services to women living in rural and semi-urban areas to help them access greater economic opportunities. The company’s business follows the joint liability group-lending model. In December 2018, Warburg made an investment of Rs 520 crore in the company, which achieved a 45 per cent growth in assets under management (AUM) in 2018-19 and had an outstanding portfolio worth Rs 3,350 crore as of December 2019. As of 30 June 2022, it is one of the top NBFC-MFIs in India in terms of AUM, according to CRISIL. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.