Fusion Micro Finance IPO subscribed 29%

Published on Nov 03, 2022 17:55

The initial public offer (IPO) of Fusion Micro Finance received bids for 61,45,560 shares as against 2,13,75,525 shares on offer, according to stock exchange data 17:00 IST on, Thursday (3 November 2022). The issue was subscribed 0.29 times.

The issue opened for bidding on Wednesday (02 November 2022), and it will close on Friday (04 November 2022). The price band of the IPO is fixed at Rs 350-368 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof.

The offer comprises of a fresh issue of up to Rs 600 crore and offer for sale of up to 13,695,466 equity shares.

The company proposes to utilize the net proceeds towards augmenting its capital base. In addition, it expects to receive the benefits of listing of the equity shares on the stock exchanges and enhancement of company`s brand name amongst existing and potential customers and creation of a public market for equity shares in India.

Ahead of the IPO, Fusion Micro Finance on Friday, 28 October 2022, raised Rs 331.2 crore from anchor investors. The board has finalized the allocation of 89,99,943 shares at Rs 368 per share to 17 anchor investors.

Fusion Micro Finance is a second largest microfinance non-banking finance company (NBFC) in terms of gross loan portfolio (GLP) providing financial services to unserved and underserved women in rural and peri-rural areas across India. It is one of the youngest companies in terms of getting an NBFC- micro finance institution (MFI) licence among the top NBFC-MFIs in India in terms of AUM. As of June 2022, total AUM of the company was Rs 7389.02 crore.

The company has prioritized organic geographic diversification since inception in 2010, with a focus on strategic management of state concentration risk by expanding into underpenetrated rural areas that offer significant growth opportunities. The company has built a significant footprint across India with network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories in India serving 2.90 million active borrowers end June 2022.

The company reported a total income of Rs 360.45 crore and a net profit of Rs 75.10 crore in the three months ended on 30 June 2022.