Fusion Microfinance IPO: The company has reserved 50 per cent of shares in the IPO for qualified institutional buyers (QIBs) which include large financial institutions, mutual funds and foreign investors
Microfinance company Fusion Microfinance's share sale via initial public offering (IPO) will open on Wednesday (November 2) and end on Friday (November 4). The company is planning to raise Rs 1,104 crore from the IPO which comprises of fresh issue of Rs 600 crore and an offer for sale (OFS) of 13,695,466 shares of face value of Rs 10 each.
The initial share sale will open for public subscription on November 2 and conclude on November 4. The bidding for anchor investors will open on November 1, according to the company. The company has reserved 50 per cent of shares in the IPO for qualified institutional buyers (QIBs) which include large financial institutions, mutual funds and foreign investors. 15 per cent of the issue is reserved for non-institutional investors (NIIs) and 35 per cent of issue is reserved for retail individual investors.
The IPO comprises fresh issuance of equity shares worth Rs 600 crore and an offer of sale of 1,36,95,466 equity shares by promoters and existing shareholders. The company has fixed price band of Rs 350-368 per share and retail investors can bid for minimum one lot of 40 shares up to maximum of 13 lots. One lot of Fusion Microfinance shares in the IPO will cost Rs 14,720.
Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund are selling shares in the IPO through OFS route.
Net proceeds from the fresh issue will be used to augment the capital base of the microfinance firm.
The New Delhi-headquartered microfinance company provides financial services to underserved women across India to facilitate their access to greater economic opportunities.
The company uses the joint liability group (JLG) model, developed by Grameen Bank in Bangladesh, to give loans of up to Rs 50,000.
In December 2018, Warburg had invested Rs 520 crore in the company, which achieved a 45 per cent growth in assets under management in the 2018-19 financial year and had an outstanding portfolio of Rs 3,350 crore as of December 2019.
Fusion Microfinance Book Running Lead Managers and Registrar
ICICI Securities, CLSA India, JM Financial and IIFL Securities are the merchant bankers to the issue while Link Intime India Private Ltd is the registrar.
(With PTI inputs)