Fusion Micro Finance IPO Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 17, 2022One of the youngest companies among the top 10 NBFC-MFIs in India in terms of AUM as of March 31, 2021, Fusion Micro Finance Limited is gearing up to launch its IPO and raise funds.
Fusion Micro Finance IPO will comprise fresh issue and offer for sale. The company is proposing the IPO to augment its capital base and execute the share sale by the promoters and early investors of the company.
Let’s dig further into the company’s operations and examine the aspect of this IPO through Fusion Micro Finance IPO Review.
| Face Value | Rs 10 |
| Price Band | Rs. 350 to Rs. 368 per share |
| Listing At | BSE, NSE |
| Min. Order Quantity | 40 shares |
| Listing Date | Nov 15, 2022 |
| Offer for Sale | Rs. Crore |
| Fresh Issue | Rs.600 Crore |
| IPO Size | Rs. 1,103.99 Crore |
| Tick Size | 1 |
Fusion Micro Finance IPO Overview
Fusion Micro Finance IPO is a Fresh Issue of Equity Shares worth up to Rs. 600 crore along with an Offer for Sale for up to 2,19,66,841 equity shares.
The company is engaged in the business of financing and acts as an NBFC – Microfinance Institution. It assists and supports women entrepreneurs from rural and semi-urban areas to achieve their goals.
As per the DRHP, the company might undertake a pre-IPO placement before filing RHP with RoC for about Rs. 120 crore.
Fusion Micro Finance IPO Important Dates
| Events | Date |
| IPO Opening Date | Nov 2, 2022 |
| IPO Closing Date | Nov 4, 2022 |
| Basis of Allotment Finalization | Nov 10, 2022 |
| Refunds Initiation | Nov 11, 2022 |
| Credit of Shares to Demat Account | Nov 14, 2022 |
| Share Listing Date | Nov 15, 2022 |
Fusion Micro Finance Limited filed the Draft Red Herring Prospectus (DRHP) with the capital market regulator SEBI to seek approval and launch its IPO in the market.
Now, it has received the approval and will open for bids on 2nd November. The IPO will be open for three days where the investors can place their bids.
For, further details of the IPO dates, refer the table given above.
The company has been planning and preparing for the IPO for a long time. It will be a significant step in the journey of their operations and will help upscale the business.
Fusion Micro Finance IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Rs. 350 to Rs. 368 per share |
| Offer for Sale | Rs. Crore |
| Fresh Issue | Rs.600 Crore |
| IPO Size | Rs. 1103 Crore |
Fusion Micro Finance IPO Size will be formed of the shares offered by way of a Fresh Issue of Shares and an Offer for Sale.
The Fusion Micro Finance IPO Price will be determined by the company and the selling shareholders in consultation with the Book Running Lead Managers (BRLMs) through the Book Building Process.
The face value of the offered shares by Fusion Micro Finance is Rs. 10 each. The shares are proposed to be listed on BSE and NSE.
Fusion Micro Finance IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 15 Nov 2022 | Rs. 5 | Rs. 300 | Rs. 600 |
| 14 Nov 2022 | Rs. 5 | Rs. 300 | Rs. 600 |
| 12 Nov 2022 | Rs. 5 | Rs. 300 | Rs. 600 |
| 11 Nov 2022 | Rs. 5 | Rs. 300 | Rs. 600 |
| 10 Nov 2022 | Rs. 5 | Rs. 300 | Rs. 600 |
| 09 Nov 2022 | Rs. 5 | Rs. 300 | Rs. 600 |
| 08 Nov 2022 | Rs. 5 | Rs. 300 | Rs. 600 |
Grey Market is a parallel market for trade. Traders can bid and offer shares of a company whose IPO will hit the market.
The market is unofficial and is not regulated under the regulations of the capital market, but it has its significance in an IPO. It helps traders and experts predict the likable listing price of the shares on the stock market.
Fusion Micro Finance IPO GMP will be available after the issuer declares the IPO dates.
Fusion Micro Finance IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 2nd Nov | 0.00x | 0.23x | 0.14x | 0.12x |
| 2nd Day – 3rd Nov | 0.00x | 0.61x | 0.31x | 0.29x |
| 3rd Day – 4th Nov | 8.59x | 1.38x | 0.51x | 2.95x |
| Shares Offered or Net Issue | 5,956,362 | 4,625,749 | 10,793,414 | 21,375,525 |
Fusion Micro Finance IPO Subscription is started now. The company has already received SEBI approval and will be launching the IPO according to the favorable market conditions.
The IPO was filed in August 2021 with SEBI, and the approval was obtained in November, but due to the underlying circumstances of the market, the company decided to push the IPO further. Now, its all set to floor the IPO in early November of 2022.
50% of the offer will be reserved for the Qualified Institutional Buyers, and 15% of the offer will be allocated to Non-Institutional Bidders. The remaining 35% will be reserved for the Retail Individual Bidders.
Fusion Micro Finance IPO Allotment Status
The basis of Fusion Micro Finance IPO Allotment will be determined to post the subscription process. The company will receive all the bids during the subscription period and later determine the exact price of the equity shares.
After the allotment takes place, the company’s shares will be listed on the stock exchanges, i.e., NSE and BSE.
Fusion Micro Finance IPO Live Performance
Check the Fusion Micro Finance IPO Performance from anywhere at a single click and track the ups and downs in the Fusion Micro Finance IPO Price easily.
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Fusion Micro Finance – Company Review
Fusion Micro was originally started as Ambience Fincap Private Limited in the year 1994. It received its certificate of registration from RBI to act as a non-deposit accepting non-banking financial company in January 2003.
In 2010, the company undertook to change its name from Ambience Fincap Private Limited to ‘Fusion Micro Finance Private Limited.’
Later, in July 2021, the company was converted into a public limited company, and subsequently, its name was changed to “Fusion Micro Finance Limited.”
Today, the company operates as an ‘NBFC – Microfinance Institution’ and creates opportunities for women in rural and semi-rural areas across India.
Products or Services
Fusion Micro Finance Limited is an NBFC that offers unserved and underserved women financial services. It creates opportunities for people at affordable costs and assists them in realizing their dreams.
The company has been in operation for longer than a decade and has rendered its services to numerous women and supports their goals.
They offer their services through Microfinance in the form of Income Generation Loans, Top-up Loans, Emergency Loans, Cross-Sell Loans, Unsecured Business Loans, Secured Business Loans, Machinery loans, etc.
Promoters and Holding
The promoters of Fusion Micro Finance Limited are:
- Devesh Sachdev
- Creation Investments Fusion LLC
- Creation Investments Fusion II, LLC
- Honey Rose Investment Ltd
The management of the company includes:
- Devesh Sachdev, in the position of Managing Director and CEO
- Ratna Dharashree Vishwanathan, in the position of Independent Director
- Namrata Kaul, in the position of Independent Director
- Narendra Ostawal, in the position of Nominee Director
- Kenneth Dan Vander Weele, in the position of Nominee Director
- Shobinder Duggal, in the position of Independent Director
- Gaurav Maheshwari, in the position of Chief Financial Officer
- Deepak Madaan, in the position of Company Secretary and Compliance Officer
- Tarun Mehndiratta, in the position of Chief Operating Officer – MIFI
- Kamal Kumar Kaushik, in the position of Chief Operating Officer – MSME
- Ankush Ahluwalia, in the position of Senior Vice President – Business Operations
- Naveen Kumar Mangle, in the position of Chief Technology Officer
- Sanjay Vishwanath Choudhary, in the position of Chief Risk Officer
Is Fusion Micro Finance good for Investment?
Fusion Micro Finance Limited has been in operation since 1994. Over the years, the company has widened its area of operations to extend its services to as many people as it can.
It helps women from rural areas and gives them wings to bring their dreams to reality.
Their clients majorly comprise women from rural and semi-urban areas. Offering financial assistance help to women entrepreneurs is an essential key to the overall economy’s growth.
It offers equal opportunities and instills strength and support in women. Fusion Micro Finance was ranked among the top 10 NBFC-MFIs in India in terms of AUM as of March 31, 2021.
Fusion Micro Finance Financial Statements
| Amount (in INR & Million) | |||
| Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Assets | 72,904.82 | 58,379.33 | 42,399.94 |
| Revenue | 12,013.49 | 8,730.88 | 7,303.11 |
| Expense | 1,769.23 | 8,162.97 | 6,303.16 |
| Profit After Tax | 217.55 | 439.44 | 696.10 |
The DRHP of Fusion Micro Finance Limited consists of its financial report, which states its financial standings from the past few years.
The company’s revenue for the years 2019, 2020, and 2021 were – 4,970.53 million, 7,303.11 million, and 8,730.88 million.
The company’s profits for the years 2019, 2020, and 2021 were – 684.03 million, 999.95 million, and 567.91 million. The company is profit-making and has maintained a positive record over the years.
In the immediately preceding financial year, i.e., 2021-22, the company clocked a total income of 12,013.49 million, and its profit stood at 244.26 million.
| Earnings per Equity Share (in Million) | |||
| Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Basic | 2.67 | 5.56 | 10.47 |
| Diluted | 2.64 | 5.49 | 10.32 |
The EPS of Fusion Micro Finance has shrunk slightly in the latest years. As of March 31, 2020, the company’s EPS was Rs. 10.47, which has gone down to Rs. 2.67 as of March 31, 2022.
Fusion Micro Finance IPO Review
The Fusion Micro Finance IPO is a combination of a Fresh Issue aggregating up to Rs. 600 crores and an Offer for Sale for up to 2,19,66,841 equity shares.
Two of the company’s promoters, Devesh Sachdev and Mini Sachdev, will be offering 13 lakh shares and 2 lakh shares, respectively.
Apart from the promoters, other early investors like Creation Investment, Honey Rose Investment, Oikocredit, Ecumenical Development, and Global Financial Inclusion Fund will also lower their shareholdings in the company.
The selling shareholders will receive the proceeds from the Offer for Sale. The company will only receive proceeds from the fresh issue and will apply them towards augmenting its capital base.
Fusion Micro Finance IPO Details
Here are few more details you need to know before investing in Fusion Micro Finance IPO –
Fusion Micro Finance IPO Issue Object
- Augment the capital base of our Company
- Appraisal of the Objects and Bridge Financing
- Means of Finance
- Offer related expenses
Fusion Micro Finance IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- our well diversified and extensive pan-India presence;
- our proven execution capabilities with strong rural focus;
- access to diversified sources of capital and effective asset liability management;
- robust underwriting process and risk management policies;
- technologically advanced operating model; and
- stable and experienced management team supported by marquee investors.
Quantitative factors are:
| Basic EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 5.56 | 3.53 | 150.92 |
| 31-Mar-20 | 10.47 | 5.81 | – |
| Mar-19 | 10.49 | 8.10 | – |
Fusion Micro Finance IPO Lead Managers
Here are the list of Lead managers –
- ICICI Securities Limited
- CLSA India Private Limited
- IIFL Securities Limited
- JM Financial Limited
Fusion Micro Finance IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
C 101, 247 Park, L. B. S. Marg
Vikhroli (West), Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: fusion.ipo@linkintime.co.in
Investor grievance e-mail: fusion.ipo@linkintime.co.in
Contact person: Shanti Gopalkrishnan
Website: www.linkintime.co.in
SEBI Registration: INR000004058
Fusion Micro Finance IPO – Other Details
- Statutory Auditor – S.R. Batliboi & Associates LLP
- Legal Counsel to the Company – IndusLaw
- Bankers to the Company – HDFC Bank Limited, Axis Bank Limited
Fusion Micro Finance IPO – Conclusion
The Fusion Micro Finance Limited is a financing company that generally extends its financial services to rural women. They have been operating for decades and have earned quite a name in the segment.
The company is profitable and has high potential. Fusion Micro Finance IPO will help the company enhance its operations and serve its purpose more efficiently.
The company is regulated by statutory authorities under the acts like Company Law and RBI act and adheres to due compliances. Investors can consider investing in the company with the upcoming IPO.
To Subscribe to Fusion Micro Finance IPO – Open Demat Account Now!
Fusion Micro Finance IPO Review FAQs
Check out the FAQs on Fusion Micro Finance IPO –
What is the Issue Size of Fusion Micro Finance IPO?
The Company is making an initial public offer of 13,695,466 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Fusion Micro IPO?
The price band for this particular IPO ranges between Rs. 350 to 368. As far as the face value of the share is of concern, it is Rs.10 per share.
What is the Fusion Micro Finance IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Nov 2, 2022, while the closing date is set at Nov 4, 2022.
What is the Fusion Micro IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. Basis of Allotment finalization is on Nov 10, 2022, refund initiation is on Nov 11, 2022, credit of shares is on Nov 14, 2022, and share listing date is on Nov 15, 2022.
What is the Fusion Micro Finance IPO Listing Date?
Shares of this company shall be listed in the exchanges Nov 15, 2022. The date, when the listing would be done, is stagnant on Nov 15, 2022.
Who is the Registrar of Fusion Micro Finance IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Fusion Micro IPO?
Here are the promoters of this IPO – DEVESH SACHDEV, CREATION INVESTMENTS FUSION, LLC, CREATION INVESTMENTS FUSION II, LLC AND HONEY ROSE INVESTMENT LTD. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Fusion Micro IPO?
They have obtained the GMP of this IPO and it is Rs 5. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Fusion Micro Finance IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Fusion Micro Finance Company?
We have the information of company financials, and according to that, we have the figures from the last few years to provide. PAT for the financial year 2021 in Million is 217.55, 2020 is 439.44 , 2019 is 696.10.
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