Fusion Micro Finance Limited has come up with an initial public offer (IPO). It will open on November 02-04, 2022 at Rs.350-368 a share. The IPO issue size is around Rs.1,103.99 crore. The minimum bid will be for 40 shares and in its multiples thereafter.
Overview
Fusion Microfinance was incorporated in 1994, which provides financial services to unserved and underserved women in rural and peri-rural areas across India. The company’s network and services have improved accessibility to formal credit at affordable prices. It is one of the youngest companies among the top NBFC-MFIs in India in terms of AUM as of June 30, 2022. It had the fourth fastest gross loan portfolio CAGR of 53.89% between the financial years 2017 and 2021 among the 10 largest NBFC-MFIs in India.
The company has extended its reach to 2.90 million active borrowers which were served through its network of 966 branches and 9,262 permanent employees. It has spread across 377 districts in 19 states and union territories in India, as of June 30, 2022. The company’s business runs on a joint liability group-lending model, wherein a small number of women form a group and guarantee one another’s loans.
Website – https://fusionmicrofinance.com/
Promoters
| Devesh Sachdev – 6.58% | Mini Sachdev – 0.36% |
| Creation Investments Fusion II – 18.17% | Honey Rose Investment Ltd – 48.65% |
| Creation Investments Fusion – 11.80% |
Promoter Holding
| Pre-Issue Shareholding – 85.57% | Post-Issue Shareholding – |
Strength & Weakness
| Strengths | Weaknesses |
| Well Diversified and Pan-India Presence | Business is vulnerable to interest rate risk |
| Proven Capabilities with Strong Rural Focus | Outstanding legal proceedings against Company & Directors |
| Access to Diversified Sources of Capital | Subject to strict laws and regulations |
| Effective Asset Liability Management | Competition from other MFIs, banks and FIs |
| Robust Underwriting Process and Risk Management Policies | Depend on the accuracy and completeness of information |
| Technologically Advanced Operating Model | Entered into related-party transactions |
| Experienced Management Team | Depends upon management team |
Products
| Agriculture Loans | Manufacturing Loans | Trade & Retail Loans |
| Services | Top-up Loans | Cross-sell Loans |
| MSME Loans | Emergency Loans |
Competitors
| CreditAccess Grameen | Spandana Sphoorty Financial | Satin Creditcare Network |
| Asirvad Microfinance | Arohan Financial Services | Muthoot Microfin |
| Annapurna Microfinance | Bandhan Bank | Ujjivan Small Finance Bank |
| Equitas Small Finance Bank | Suryoday Small Finance Bank |
Company Financials
| Year | Revenue (in Crore) | Profit (in Crore) |
| 31-Mar-2020 | 720.26 | 69.61 |
| 31-Mar-2021 | 855.81 | 43.94 |
| 31-Mar-2022 | 1151.26 | 21.75 |
| 30-Jun-2022 | 342.72 | 75.10 |
Object of Issue
1) To utilize the Net Proceeds towards augmenting its capital base.
2) To receive the benefits of listing the Equity Shares on the Stock Exchanges.
3) The Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale.
Fusion Micro Finance IPO Lot Size
| Application | Lot | Shares | Amount |
| Retail (Min) | 1 | 40 | Rs.14,720 |
| Retail (Max) | 13 | 520 | Rs.1,91,360 |
| S-HNI (Min) | 14 | 560 | Rs.2,06,080 |
| B-HNI (Max) | 68 | 2720 | Rs.10,00,960 |
Fusion Micro Finance IPO details
| IPO Opening Date | November 02, 2022 |
| IPO Closing Date | November 04, 2022 |
| Face Value | Rs.10 per Equity Share |
| IPO Price | Rs.350-368 per share |
| Market Lot | 40 shares |
| Minimum Order Quantity | 40 shares |
| Listing At | NSE, BSE |
| No. of shares offered (OFS) | 1,36,95,466 shares |
| Issue Size | Up to Rs.1,103.99 Crore |
| QIB Shares Offered | 50% of the offer |
| Retail Shares Offered | 35% of the offer |
| NII/HNI Shares Offered | 15% of the offer |
Fusion Micro Finance IPO Timetable
| IPO Date | November 02-04, 2022 |
| Allotment Date | November 10, 2022 |
| Initiation of Refunds | November 11, 2022 |
| Credit of share to Demat a/c | November 14, 2022 |
| IPO Listing Date | November 15, 2022 |
Allotment Status
Link Intime – https://linkintime.co.in/
Book Lead Managers
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