Fusion Micro Finance IPO will open for subscription from 02 November 2022. the company aims for an issue size of ₹1,103.99 Cr through this IPO.
Fusion Micro Finance Limited
The company provides financial services to unserved and underserved women in rural and peri-rural areas across India. Its network and services have improved accessibility to formal credit at affordable prices, thereby positively impacting the lives of its customers in rural India. It had the fourth fastest gross loan portfolio CAGR of 53.89% between the financial years 2017 and 2021 among the 10 largest NBFC-MFIs in India. As of 30 June 2022 and 31 March 2022, its total AUM was INR 73,890.23 million and INR 67,859.71 million, respectively.
Fusion Microfinance serves 2.90 million active borrowers through its network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories in India, as of 30 June 2022. As of 30 June 2022, its share of AUM from customers in rural areas represented 91.37% of the total AUM. Its focus customer segment is women in rural areas with an annual household income of up to INR 300,000. The company’s business runs on a joint liability group-lending model, wherein a small number of women form a group (typically comprising five to seven members) and guarantee one another’s loans.
Basic details about the company
| Full name | Fusion Micro Finance Limited |
| Sector | Finance |
| Industry | Finance-NBFC |
| Company Website | https://fusionmicrofinance.com/ |
Major competitive strengths
- Diversified and Extensive Pan-India Presence.
- Well-experienced management team.
- Proven Execution Capabilities with Strong Rural Focus.
- Access to Diversified Sources of Capital and Effective Asset Liability Management.
Objects of the Issue
- Augment the capital base of the Company.
- General Corporate Purposes.
Dates to remember
| IPO Opening date | 02 November 2022 |
| IPO Closing | 04 November 2022 |
| Basis of Allotment | 10 November 2022 |
| Initiation Refund | 11 November 2022 |
| Credit to Demat Account | 14 November 2022 |
| Listing Date | 15 November 2022 |
Fusion Micro Finance IPO Details
| IPO Date | Nov 2, 2022 to Nov 4, 2022 |
| Face Value | ₹10 per share |
| Price | ₹350 to ₹368 per share |
| Lot Size | 40 Shares |
| Issue Size | [.] shares of ₹10 (aggregating up to ₹1,103.99 Cr) |
| Fresh Issue | [.] shares of ₹10 (aggregating up to ₹600.00 Cr) |
| Offer for Sale | 13,695,466 shares of ₹10 (aggregating up to ₹[.] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Fusion Micro Finance IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 40 | ₹14,720 |
| Retail (Max) | 13 | 520 | ₹191,360 |
| S-HNI (Min) | 14 | 560 | ₹206,080 |
| B-HNI (Min) | 68 | 2,720 | ₹1,000,960 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Fusion Microfinance Financial Performance
| FY 2020 | FY 2021 | FY 2022 | |
| Revenue | 720.3 | 855.8 | 1,151.3 |
| Expenses | 630.3 | 816.3 | 1,176.9 |
| Net income | 69.6 | 43.9 | 21.8 |
| Margin (%) | 9.66 | 5.13 | 1.89 |
Fusion Microfinance Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | 10.32 | 5.49 | 2.64 |
| PE ratio | – | – | 132.58 – 139.39 |
| RONW (%) | 5.81 | 3.53 | 1.63 |
| Debt/Equity | 2.48 | 3.56 | 4.32 |
| NAV | – | – | 161.67 |
Company Promoters
- Devesh Sachdev
- Creation Investments Fusion LLC
- Creation Investments Fusion II LLC
- Honey Rose Investment Ltd
Fusion Micro Finance IPO Promoter Holding
| Pre Issue Share Holding | 85.57% |
| Post Issue Share Holding | – |
Lead Manager(s)
- ICICI Securities Limited
- CLSA India Private Limited
- IIFL Securities Ltd
- JM Financial Consultants Private Limited
Fusion Microfinance Offer Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 22 4918 6200
Email: fusion.ipo@linkintime.co.in
Website: www.linkintime.co.in
Fusion Microfinance Contact Details
Fusion Micro Finance Limited
Plot no. 86,
Institutional Sector 32,
Gurugram, Haryana 122001
Phone: +91 11 46646600
Email: companysecretary@fusionmicrofinance.com
Website: www.fusionmicrofinance.com
Fusion Microfinance IPO Allotment Status
Fusion Microfinance IPO allotment will be available on Link Intime’s website.
Click on this link to get allotment status.
Final thoughts
Fusion Micro Finance IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
