Fusion Microfinance IPO: The company had reserved 50 per cent of shares in the IPO for qualified institutional buyers (QIBs) which include large financial institutions, mutual funds and foreign investors
Share allotment process of Fusion Microfinance shares began today. The microfinance company share sale via initial public offering (IPO) opened on Wednesday (November 2) and ended on Friday (November 4). The company raised Rs 1,104 crore from the IPO which comprised 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 IPO was subscribed 2.95 times and the shares are expected too list on stock exchanges on November 15.
The company had 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 was reserved for non-institutional investors (NIIs) and 35 per cent for retail individual investors.
Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund sold 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.