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Fusion Micro Finance IPO

Midway through August 2021, Fusion Mirco Finance submitted their DRHP, totalling more than Rs. 1,900 crores, to SEBI. The firm received SEBI's clearance on November 22, 2021. The IPO comprises of new issuance for Rs. 600 crores and an offer by the promoter and other existing shareholders to sell up to 2.197 crore equity shares. Devesh Sachdev and Mini Sachdev are selling 13 lakh and 2 lakh shares, respectively, of the equity shares offered for sale. While Creation Investments aims to sell about 40 lakh equity shares, early investors like Honey Rose Investment plan to sell 63.21 lakh shares. Oikocredit, Ecumenical Development, and the Global Financial Inclusion Fund are other OFS shareholders. Prior to the IPO, the promoters together owned 85.5 per cent of the firm, while the other selling shareholders owned 12.03 per cent. Fusion Mirco Finance could decide to do an Rs. 120 crores pre-IPO placement, and anchor investments would also happen close to the subscription date. IIFL Securities Ltd, ICICI Securities Ltd, CLSA India Pvt Ltd, and JM Financial Ltd are the book-running lead managers for the offering. The primary goal of the offer is to increase the company's capital base and the money set aside for this Rs. 600 crores. If you are existing user of Angelone, Apply now and avoid last minute hustle.

Opening Date

Nov 2, 2022

Closing Date

Nov 4, 2022

Price Band

₹350 to ₹368

Issue Size

₹1104 Cr

Face Value

₹10

per equity share

Market Lot

40 Shares

Opening Date

Nov 2, 2022

Closing Date

Nov 4, 2022

Price Band

₹350 to ₹368

Issue Size

₹1104 Cr

Face Value

₹10

per equity share

Market Lot

40 Shares

Listing at NSE, BSE

Fusion Micro Finance Limited IPO Important Dates

IPO Open Date Nov 2, 2022
IPO Close Date Nov 4, 2022
Allotment Date Nov 10, 2022
Initiation Of Refunds Nov 11, 2022
Credit Of Shares To
Demat Account
Nov 14, 2022
IPO Listing Date Nov 15, 2022
UPI Mandate Expiry Date To be announced

View all upcoming IPOs

Fusion Micro Finance IPO Latest News and Subscription Status Today [Live]

At 05:38:00 PM.
  • This IPO has been subscribed 2.95x by 05:38 PM. on Day 3
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 8.59
    • (NII) Non-institutional buyers: 1.38
    • (RII) Retail Individual buyers: 0.51
    • Employees: [.]
    At 03:56:00 PM.
  • This IPO has been subscribed 2.94x by 01:24 PM. on Day 3
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 8.59
    • (NII) Non-institutional buyers: 1.37
    • (RII) Retail Individual buyers: 0.49
    • Employees: [.]
    At 01:24:00 PM.
  • This IPO has been subscribed 0.79x by 01:24 PM. on Day 3
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 1.34
    • (NII) Non-institutional buyers: 1.00
    • (RII) Retail Individual buyers: 0.39
    • Employees: [.]
    At 11:14:00 AM.
  • This IPO has been subscribed 0.34x by 11:14 AM. on Day 3
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.74
    • (RII) Retail Individual buyers: 0.36
    • Employees: [.]
    At 05:07:00 PM.
  • This IPO has been subscribed 0.29x by 05:07 PM. on Day 2
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.61
    • (RII) Retail Individual buyers: 0.31
    • Employees: [.]
    At 03:57:00 PM.
  • This IPO has been subscribed 0.23x by 03:57 PM. on Day 2
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.46
    • (RII) Retail Individual buyers: 0.26
    • Employees: [.]
    At 01:23:00 PM.
  • This IPO has been subscribed 0.20x by 01:23 PM. on Day 2
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.37
    • (RII) Retail Individual buyers: 0.23
    • Employees: [.]
    At 10:44:00 AM.
  • This IPO has been subscribed 0.15x by 10:44 AM. on Day 2
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.26
    • (RII) Retail Individual buyers: 0.18
    • Employees: [.]
    At 05:00:00 PM.
  • This IPO has been subscribed 0.12x by 05:00 PM. on Day 1
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.23
    • (RII) Retail Individual buyers: 0.14
    • Employees: [.]
    At 03:14:00 PM.
  • This IPO has been subscribed 0.06x by 03:14 PM. on Day 1
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0,08
    • (RII) Retail Individual buyers: 0.09
    • Employees: [.]
    At 01:08:00 PM.
  • This IPO has been subscribed 0.04x by 01:08 PM. on Day 1
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0,05
    • (RII) Retail Individual buyers: 0.07
    • Employees: [.]
    At 10:58:00 AM.
  • This IPO has been subscribed 0.02x by 10:58 AM. on Day 1
  • It is a public issue of 21,375,525 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.01
    • (RII) Retail Individual buyers: 0.03
    • Employees: [.]

    About Fusion Micro Finance Limited

    Fusion Micro Finance, located in New Delhi and established in 2010, is a micro-lending company that provides funding to women in rural and semi-urban regions so they may take advantage of more options for employment. Fusion offers loans up to Rs. 50,000 and employs a joint liability group concept created by the Grameen Bank of Bangladesh. Fusion Micro Finance saw the third-fastest 44 per cent increase in its gross loan portfolio between FY18 and FY21. In terms of assets under management as of March 31, 2021, they were also one of the 10 top NBFC-MFIs in the nation's youngest enterprises. With 725 locations and 6,351 staff working in 18 states and union territories, the firm serves 2.12 million active borrowers. In FY21, there were 3,303.4 crores in cashless disbursements or 89.86% of all disbursements. Gross NPAs were 5.51 per cent, 1.12 per cent, and 1.55 per cent for the fiscal years FY21, FY20, and FY19, respectively.

    Fusion Micro Finance Limited IPO Objectives

    Here are a few quick reasons why Fusion Micro Finance Limited going public:

    • Company proposes to utilize the Net Proceeds towards augmenting its capital base. In addition, Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.
    • Enhancement of the Company’s brand name amongst our existing and potential customers and creation of a public market for our Equity Shares in India.
    • The main objects clause and objects incidental and ancillary to the main objects clause as set out in the Memorandum of Association enable the Company to undertake its existing activities and the activities for which funds are proposed to be raised by Company through the Fresh Issue.

    Why should you invest in the Fusion Micro Finance Limited IPO?

    Below are our top 2 reasons:

    • 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.
    • The average ticket size of MFIs has risen to ₹35,262 in the financial year 2021 from ₹23,196 in the financial year 2018, translating into a CAGR of 15%. The ticket size has seen a sharp jump in the financial year 2021 as disbursements might have happened largely to the existing clients.

    Financial Highlights

    Particulars FY21 FY20 FY19
    Revenue from operations (In Rs. cr) 855.8 720.2 494.3
    PAT (In Rs. cr) 44 69.6 50.66
    EPS (In Rs/share) 5.56 10.47 10.49
    Total borrowings 79.03 78.95 61.57
    Share Capital 3,325.07 2,457.15 2,313.03
    Total assets 5837.93 4240 3610.5

    How to apply for Fusion Micro Finance Limited IPO?

    There are two ways by which investors can choose to start trading. One is through UPI, and the other is with the help of a Demat account. The processes are discussed below:

    UPI

    • Link your bank account to a UPI ID.
    • Register your UPI id with your Demat account.
    • Subscribe for Fusion Micro Finance Limited IPO and approve the payment on your UPI ID.

    Demat Account

    Fusion Micro Finance Limited Noteworthy Highlights:

    • They are 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. In addition, Fusion Micro had the third-fastest gross loan portfolio growth of 44% among the top NBFC-MFIs in India between the financial years 2018 and 2021, according to CRISIL.
    • Fusion Micro Finance has achieved a significant footprint across India, where we have extended our reach to 2.12 million active borrowers who we serve through our network of 725 branches and 6,351 permanent employees spread across 326 districts and 18 states and union territories in India, as of March 31, 2021.

    The Brand’s Pros & Cons:

    Pros Cons
    In order to maintain a quick-moving and dynamic company model, they have a very technologically advanced operational model that is routinely examined and altered. Because of the kind of consumers, it lends to, every microfinance organisation is subject to inherent risks. There isn't any other type of financing going on.
    They have a significant rural focus; 69.24 per cent of all branches and 92.51 per cent of all clients are located in rural regions. Interest rate volatility may have a negative impact on the company's net interest margin and net interest income.
    The firm employs 6,351 people in 326 districts throughout 18 states of India and has a strong pan-Indian presence. An unanticipated rise in the NPAs might have a detrimental impact on the company's cash flow, operations, and overall finances.
    The business's management team is powerful, knowledgeable, and experienced. Mr Devesh Sachdev, the company's creator, has more than 25 years of practical expertise. The fact that the bank is managing such a sizable number of branches and staff entails significant risks.

    Competitive Analysis: Market Peers

    With the immense growth in the Asset Management industry, Fusion Micro Finance Limited faces a lot of challenges from competitor brands. Below are a few market players and their comparison on revenue growth.

    Company Total Income (Rs. Cr) EPS Diluted (Rs/share) RoNW% P/E
    Fusion Mirco Finance Ltd 873.08 5.49 3.53% -
    CreditAcess Grameen Ltd 2466.07 8.90 3.56% 78.53
    Spandana Sphoorty Financial Ltd 1505.6 22.47 5.29% 29.94
    Bandhan Bank Ltd 14633.2 13.69 12.67% 22.27
    Ujjivan Small Finance Bank Ltd 3116.8 0.05 0.26% 582
    Suryoday Small Finance Bank Ltd 875.6 1.31 0.74% 159.7

    Fusion Micro Finance Limited IPO FAQs

    What is Fusion Micro Finance Limited IPO?

    A fresh issue of Rs. 600 crores and an offer for sale (OFS) of 2,19,66,841 equity shares would be included in the Fusion Microfinance IPO.

    When will Fusion Micro Finance Limited IPO allotment be available?

    The date of allotment for the IPO shares is decided on November 10, 2022.

    What will be Fusion Micro Finance Limited IPO lot size?

    One lot of Fusion Micro Finance contains 40 equity shares.

    When will Fusion Micro Finance Limited IPO open for subscription?

    The subscription window will open on November 2, 2022.

    What minimum lot size can retail investors subscribe to?

    Retail investors need to apply for a minimum of one lot.

    When is the Fusion Micro Finance Limited IPO listing date?

    Fusion Micro Finance IPO will debut on the stock exchanges on November 15, 2022.

    Which exchanges will Fusion Micro Finance Limited list on?

    The IPOs will list on BSE and NSE.

    When will Fusion Micro Finance Limited list on exchanges?

    Usually, it takes around ten business days from the last day of the subscription to list the IPOs on the exchange.

    How will I receive shares?

    Once you receive the IPO allotment, the shares will be credited to the Demat account.

    Is it necessary to approve a UPI mandate request immediately?

    You will have to approve the UPI mandate within T+1 days. The amount will not get debited immediately, but the bank will freeze the funds against the IPO bid until the UPI mandate expiry date.

    Is it possible for NRIs to use Angel One App to apply for Fusion Micro Finance Limited IPO?

    Yes, NRIs can apply for IPO using the Angel One app if their bank supports for NRE/NRO account.

    Who is the owner of Fusion Micro Finance Limited?

    MD & CEO. Company's Managing Director & CEO, Devesh Sachdev, An XLRI Post Graduate with 25 years of experience in the Service Industry.

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