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Fusion Microfinance Ltd IPO

Price Range (₹)

Rs. 350 – Rs. 368

Issue Size (₹ in Cr.)

Up to 1103.99 crores

Minimum Quantity

40 shares

Bidding Period

Nov 2 – Nov 4, 2022

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About the Company

- The company provides  financial services to unserved and underserved women in rural and peri-rural areas across India.
- One of the youngest companies among the top 10 NBFC-MFIs in India in terms of AUM as of March 31, 2021. The company has the third fastest gross loan portfolio growth of 44% among the top NBFC-MFIs in India between the FY18-21(Source: CRISIL and Company DRHP)

Strengths

Well Diversified and Extensive Pan-India Presence
As of March 31, 2021, the company  had 2.12 million active borrowers which were served by 725 branches and 6,351 employees spread across 326 districts and 18 states and union territories in India. (Source: Company DRHP)

Proven Execution Capabilities with Strong Rural Focus
The company has a long history of serving rural markets with high growth potential in the microfinance segment, and has maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention.(Source: Company DRHP)

Access to Diversified Sources of Capital and Effective Asset Liability Management.
Over the years,the company has adopted a calibrated approach towards diversifying fund raising sources and minimizing costs of borrowings with prudent asset liability management and effective liquidity management. (Source: Company DRHP)

Risks

An increase in the level of NPAs or provisions may adversely affect business.
The company may not be able to anticipate future economic or financial developments or downturns, which could lead to an increase in  NPAs. If NPAs increase or the credit quality of borrowers deteriorate, it could have an adverse effect on the business.(Source: Company DRHP)

 

The microfinance industry in India faces unique risks due to the category of borrowers that it services
The political and social risks, such as the negative publicity surrounding the growth and profitability of the microfinance industry, public criticism of the microfinance industry, or religious beliefs and convictions regarding the extension of credit and repayment of interest may deter borrowers from fulfilling their obligations.(Source: Company DRHP)

30 second IPO overview

Financials

Industry Trends

Subscription Status

Retail Individual Investor
Non-Institutional Investor
Qualified Institutional Buyers
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    Fill in the quantity of the number of shares you want to buy. To apply at maximum price, check the cut-off price box and amount is auto calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on “Add bid” option.

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    Click on proceed to confirm the order. You can view the placed order under “order book”.

  • lock-in of 3 years

    Select IPO

    Choose the IPO you want to apply from the list. Click on Apply.

  • lock-in of 3 years

    Fill in the required details

    Fill in the quantity of shares. To apply at maximum price, check the cut-off price box and amount is auto calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on “Add bid” option.

  • lock-in of 3 years

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    Check the A/C, UPI details and click on proceed. You will get an UPI link by which payment can be made.

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FAQs

An Initial Public Offering (IPO) is when a company issues common stock or shares to the public for the first time. It is the process where a privately held company becomes a publicly traded company with the initial sale of its stock. An IPO is a tool that companies use to secure capital through investments for future use. In most instances, this investment is used to expand or improve the business.

A price band is a price floor and a cap between which a seller will let buyers place bids on a security, usually during an initial public offering (IPO).

Minimum Order Quantity, as name says, is the minimum number of shares investors can apply while bidding in an IPO. If investors want to bid for more shares, they can apply in multiples of IPO market lot (lot Size or IPO bid lot) of shares.

If an investor wants to place bids for less than Rs.2 lacs, he needs to apply in the Retail segment. If an investor wants to bid for more than Rs.2 lacs, he needs to apply in the HNI segment.

Cut-off price is the offer price, finalized by a company in consultation with the book running lead managers (BRLMs), which could be any price within the price band. Applying on Cut-off price means the investor is ready to pay whatever price is decided by the company at the end of the book-building process.

When applying at a cut-off price, an investor has to pay the highest price while placing the bid. If a company decides the final price lower than the highest price asked for IPO, the remaining amount is returned to the retail investor.

An investor can apply in all Mainboard IPOs through ICICIdirect. However, if the investor wants to apply in SME IPOs, he/she can do it through the net banking portal of ICICI Bank.

ASBA stands for "Applications Supported by Blocked Accounts". At the time of bidding, investors’ account is blocked to the extent of the bid amount and debited only at the time of allotment. This facility is being offered by ICICIDirect in affiliation with ICICI Bank Limited.

In other payment options, the bid amount is debited when investors’ bid application is placed with the stock exchanges. Under the ASBA process, the amount will be debited from investors’ bank account to the extent of successful allotment at the time of allotment. Until such allotment, the amount will remain blocked in investors’ bank account.

Application under this facility can be placed only for Book Built Public Issues.

An investor can place maximum of 3 bids in an issue.

The investor with Demat account in ICICIdirect can apply in an IPO by logging in to his ICICIdirect Account. The investor needs to select IPO and then the name of the IPO in which he would like to apply. Given below is the path:

Login to ICICIdirect account >> IPO >> Name of IPO

Investor can apply in the retail section of an IPO through iDirect Portal even if he has a 2-in-1 account (Demat, Trading Accounts) with us and Bank account with third party.

Yes, the investor can revise or withdraw the bids after application. It can be done only once the order is executed. The investor needs to go to the IPO Order Book and select the Transaction Id and then click on Withdraw Application/ Revise Bid. The application in the non- institutional category cannot be withdrawn but can only be revised.

However, this needs to be done during the issue itself and cannot be done after the issue is closed. In case of ASBA applications, for upward revision of bid, additional lien will be marked to the extent of incremental amount. However, in case of downward revision, differential money blocked earlier will not be released. Such amount, if any, will be released after allotment

No, one person cannot apply multiple times with same Demat/PAN for an IPO. If an investor applies in an IPO though multiple applications with same Demat account or same PAN Number, his applications will be rejected.

If an investor would like to place order for multiple applications, he/she can apply with his/her family member's name. But, all eligible family members should have a Demat account and a PAN number.

In cases where issue is over-subscribed, bidding for more than 1 lot from the same account doesn’t help as maximum of only 1 lot can be provided against each application. However, if the investor applies for 1 lot from different accounts, the probability of allocation of shares increases.

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