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

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)

ParticularsPeriod ended on 30th June 2022FY 2021-22FY 2020-21FY 2019-20
Total Assets7615.247290.485837.934239.99                             
Net worth1416.461337.951246.361198.89
Revenue from operations360.451201.35837.09730.31
Profit After Tax75.121.7643.9469.61
Total Borrowing (As per Restated Balance sheet)6009.975775.814432.252973.68
(Rs in Crore)

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 TypeBook Built Issue IPO
IPO PriceRs 350 to Rs 368 per share
Face ValueRs 10 per share
Market Lot40 shares
Issue Size 2,99,99,813 shares (Aggregate of Rs 1103.99 crore)
Fresh Issue1,63,04,347 shares of Rs 10 (Aggregating up to Rs 600 crore)
Offer for sale1,36,95,466 shares of Rs 10 (Aggregating up to Rs 503.99 crore)
QIB Shares OfferedNot more than 50% of the Offer
NII (HNI) Shares OfferedNot less than 15% of the Offer
Retail Shares OfferedNot less than 35% of the Offer
Listing AtBSE, NSE
Promoters1. 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 onNov 2, 2022
IPO closes onNov 4, 2022
Basis of Allotment publication dateNov 10, 2022
Initiation of RefundNov 11, 2022
Credit of shares to Demat AccountNov 14, 2022
IPO listingNov 15, 2022

Fusion Micro Finance IPO – Lot Size

ApplicationsLotsSharesAmount
Retail (Min)140Rs 14,720
Retail (Max)13520Rs 1,92,360

Fusion Micro Finance IPO – Promoter Holding

Pre issue share holding85.57%
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 InformationFusion 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 RegistrarLink 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  

FAQ’s

November 10, 2022 is the date of allotment of Micro Finance Limited IPO.

The listing date of IPO in exchange is November 15, 2022.

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