Fusion Micro Finance IPO, Dates, Price, & Allotment Details 2022

The November 2, 2022, through November 4, 2022, dates for the IPO of Fusion Micro Finance. In order to help underprivileged women in India have easier access to better economic possibilities, Fusion Micro Finance Limited is a microfinance organisation. 92.26% of our total AUM as of March 31, 2021, came from consumers in rural areas, according to our company’s share of AUM. Women in rural areas with yearly family incomes of up to Rs 160,000 make up the company’s target market.

An organization’s business is based on a joint liability group-lending concept, in which a small group of women (usually five to seven members) band together and mutually guarantee loans.

Fusion Micro Finance Limited – Noteworthy Highlights

1. They had the third fastest gross loan portfolio growth of 44% among the top NBFC-MFIs in India between the financial year 2018 and 2021.
2. Fusion Micro Finance Limited were one of the youngest companies among the top 10 NBFC-MFIs in India in terms of AUM as of March 31, 2021, according to CRISIL.
3. As of March 31, 2021, 2020 and 2019, its total AUM was ₹46,378.39 million, ₹36,065.24 million and ₹26,413.91 million, respectively.
4. As of March 31, 2021, they had 2.12 million active borrowers which were served by its 725 branches and 6,351 employees spread across 326 districts in 18 states and union territories in India.

Objects of the Issue

The company proposes to utilize the Net Proceeds of the Fresh Issue towards funding the following objects:

• Augment the capital base of our Company

Financial Highlights (Restated)

Particulars	Period ended on 30th June 2022	FY 2021-22	FY 2020-21	FY 2019-20
Total Assets	7615.24	7290.48	5837.93	4239.99
Net worth	1416.46	1337.95	1246.36	1198.89
Revenue from operations	360.45	1201.35	837.09	730.31
Profit After Tax	75.1	21.76	43.94	69.61
Total Borrowing (As per Restated Balance sheet)	6009.97	5775.81	4432.25	2973.68

Fusion Micro Finance IPO – Details

According to the DRHP filed by the company with SEBI, they are planning to issue [●] shares of Rs 10 each, aggregate up to Rs 600 crore through this public issue.

Issue Type	Book Built Issue IPO
IPO Price	Rs 350 to Rs 368 per share
Face Value	Rs 10 per share
Market Lot	40 shares
Issue Size	2,99,99,813 shares (Aggregate of Rs 1103.99 crore)
Fresh Issue	1,63,04,347 shares of Rs 10 (Aggregating up to Rs 600 crore)
Offer for sale	1,36,95,466 shares of Rs 10 (Aggregating up to Rs 503.99 crore)
QIB Shares Offered	Not more than 50% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
Listing At	BSE, NSE
Promoters	1. Devesh Sachdev, 2. Creation Investments Fusion, LLC, 3. Creation Investments Fusion II, LLC and 4. Honey Rose Investment Ltd.

Tentative Dates for Fusion Micro Finance IPO

IPO opens on	Nov 2, 2022
IPO closes on	Nov 4, 2022
Basis of Allotment publication date	Nov 10, 2022
Initiation of Refund	Nov 11, 2022
Credit of shares to Demat Account	Nov 14, 2022
IPO listing	Nov 15, 2022

Fusion Micro Finance IPO – Lot Size

Applications	Lots	Shares	Amount
Retail (Min)	1	40	Rs 14,720
Retail (Max)	13	520	Rs 1,92,360

Fusion Micro Finance IPO – Promoter Holding

Pre issue share holding	85.57%
Post issue share holding	–

Fusion Micro Finance IPO – SWOT Analysis

STRENGTH

1. Extensive and well-diversified pan-Indian presence
2. Strong rural focus and proven execution skills.
3. Access to a variety of capital sources and efficient asset-liability management
4. Strong risk management policies and an effective underwriting process.
5. Operating Model with Advanced Technology.
6. Marquee Investor Supported Management Team with Stable & Experience.

WEAKNESS

1. They must submit to routine RBI inspections because they are an NBFC-MFI. If we don’t follow the RBI’s recommendations during these inspections, we risk fines and restrictions.
2. A legal case concerning the Company and its Directors is still pending.
3. Seasonality in the company’s business operations could affect its financial situation and operational results.

OPPORTUNITY

1. The microfinance industry has recorded healthy growth in the past few years. The industry’s gross loan portfolio increased at a CAGR of 28% since the financial year 2017 to reach approximately ₹2.7 trillion in the financial year 2021.
2. The demand for microfinance products and services has increased due to improving awareness and reach leading to increased volumes, as well as rise in inflation and higher number of borrowers in higher loan cycle driving higher ticket sizes.

THREAT

1. An increase in the level of company NPAs or provisions may adversely affect its business, financial condition, results of operations and cash flows.
2. Any disruption in company sources of funding or increase in costs of funding could adversely affect company liquidity and financial conditions.
3. Any failure, inadequacy and security breach in information technology systems may adversely affect company business.
4. Any downgrade of company credit ratings may constrain company access to capital and debt markets and, as a result, may adversely affect its cost of borrowings and company results of operations.
5. Competition from other MFIs, banks and financial institutions, as well as state-sponsored social programs, may adversely affect company profitability and standing in the Indian microcredit lending industry.

Miscellaneous Information

Download Prospectus (PDF)	IPO DRHP IPO RHP
Company Contact Information	Fusion Micro Finance Limited H-1, C Block, Community Centre, Naraina Vihar, New Delhi, 110028 Phone: +91- 011-46646600 Email: [email protected] Website: https://fusionmicrofinance.com/
IPO Registrar	Link Intime India Private Limited Phone: +91-22-4918 6270 Email: [email protected] Website: https://linkintime.co.in/
IPO Lead Manager(s)	1. ICICI Securities Limited 2. CLSA India Private Limited 3. IIFL Securities Limited 4. JM Financial Limited

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