Fusion Micro Finance IPO

Closed DRHP

IPO Subscription Details

  • Open Date 02 Nov
  • Close Date 04 Nov
  • Lot Size 40
  • IPO Size ₹ 1103.99 Cr
  • IPO Price Range ₹ 350 to ₹ 368
  • Min Investment ₹ 14000
  • Listing Exchange BSE, NSE
  • Basis of Allotment 10 Nov
  • Refunds 11 Nov
  • Credit to Demat Account 14 Nov
  • Listing Date 15 Nov

Fusion Micro Finance IPO Subscription Status

Date QIB NII Retail TOTAL
02-Nov-22 0.00x 0.23x 0.14x 0.12x
03-Nov-22 0.00x 0.61x 0.31x 0.29x
04-Nov-22 8.59x 1.38x 0.51x 2.95x

IPO Synopsis

Fusion Mirco Finance IPO opens on 2nd November and closes on 4th November. The IPO consists of a fresh issue worth Rs.600 crore and an offer for sale of up to 13,695,466 equity shares by the promoter other existing shareholders. Out of these equity shares put up for the offer for sale, Devesh Sachdev and Mini Sachdev are offloading 6.5 lakh and 1 lakh shares respectively. The early investors like Honey Rose Investment and Creation Investments will offload 14 lakh shares each.Oikocredit, Ecumenical Development Cooperative Society UA will offload 66.1 lakh shares while Global Impact Funds SCA SiCAR will sell 35.4 lakh shares. 

The shares will be allotted on 10th November while the issue will be listed on 15th November. The lot size is 40 shares per lot and the price band is fixed at Rs. 350 – Rs. 368 per share. The promoters have a joint stake of 85.5% in the company, pre-IPO whereas the other selling shareholders have a 12.03% stake in the company. The book running lead managers to the issue are IIFL Securities Ltd, ICICI Securities Ltd, CLSA India Pvt Ltd and JM Financial Ltd.

Objective of Fusion Mirco Finance IPO

The main objective of the issue is to augment the capital base of the company.

Fusion Mirco Finance IPO Videos

About Fusion Micro Finance

New Delhi based Fusion Micro Finance, launched in 2010, is a micro- lending firm that enables women in rural and semi-urban areas to access funds so that they can access greater economic opportunities. Fusion uses a joint liability group model which was developed by Grameen Bank of Bangladesh and provides loans up to Rs.50,000. Between FY18 and FY21, Fusion Micro Finance had the third fastest gross loan portfolio growth of 44%. As of 31 March, 2021, they were also among the one of the youngest companies among the top 10 NBFC-MFIs in the country, in terms of Assets Under Management. 

The company has 2.12 million active borrowers who are being served by 725 branches and 6,351 employees, spread across 18 states and union territories. The cashless disbursements formed 89.86% of the total disbursements in FY21, amounting to Rs.3,303.4 crores. The gross NPAs for the years FY21, FY20, FY19 are 5.51%, 1.12% and 1.55% respectively.

Related Articles - Know about Fusion Micro Finance IPO GMP

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY22 FY21 FY20
Revenue 1151.3 855.8 720.3
EBITDA 525.8 435.8 440.2
PAT 21.8 43.9 69.6

 

Particulars (in Rs. Crores) FY22 FY21 FY20
Total Assets 7290.5 5837.9 4240.0
Share Capital 82.8 79.0 79.0
Total Borrowings 5775.8 4432.3 2973.7

 

Particulars (in Rs. Crores) FY22 FY21 FY20
Net cash generated from/(used in) operating activities -1640.7 -793.0 -749.4
Net cash from / (used in) investing activities 18.5 9.6 20.1
Net cash flow from / (used in) financing activities -204.0 1459.2 545.1
Cash and Cash Equivalents at the end of the year / period -204.0 675.8 -184.3

Peer Comparison

Name of the Company Total Income
(Rs. Cr)
EPS Diluted
(Rs/share)
RoNW% P/E NAV
Fusion Mirco Finance Ltd 12,013.49 2.67 1.63% - 161.67
CreditAcess Grameen Ltd 27,501.30 23.31 8.98% 42.60 255.19
Spandana Sphoorty Financial Ltd 14,800.35 10.75 2.26% 52.76 447.21
Bandhan Bank Ltd 1,66,939.43 0.78 0.72% 342.44 107.91
Ujjivan Small Finance Bank Ltd 31,260.74 2.40 -14.79% #NM 16.22
Equitas Small Finance Bank Ltd 39,972.26 2.43 6.61% 20.21 33.91
Suryoday Small Finance Bank Ltd 10,353.79 8.76 -6.18% #NM 141.78


IPO Key Points

  • Strengths

    •    The company is well diversified and has a pan-Indian presence with 6,351 employees in 326 districts across 18 states of India.

    •    They have a strong rural focus and 92.51% of the total customers as well as 69.24% of the total branches are present in rural areas.

    •    They have a very technologically advanced operating model which regularly reviewed and revised in order to maintain a fast paced and evolving business model.

    •    The company has a strong, skillful and experienced management team with the founder, Mr. Devesh Sachdev holding more than 25 years of practical experience.

  • Risks

    •    Every Microfinance company faces inherent risks due to the category of customers it lends to. There is no other form of lending taking place.

    •    If there is volatility in the interest rates, it could adversely affect the company’s net interest margin and net interest income.

    •    An unforeseen increase in the NPAs could lead to negative effects on the cash flow, operations and overall financials of the company.

    •    There are certain risks that come hand in hand with the large number of branches and employees that are being handles by the bank.

How to apply for IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

IPO FAQs

What is the lot size and investment required for the Fusion Microfinance IPO?

The Fusion Microfinance IPO lot size is 40 shares per lot.  A retail-individual investor can apply for up to 13 lots (520 shares or ₹191,360). 

What is the price band of the IPO?

The price band of the IPO is set at Rs. 350 – Rs. 368 per share.

When does the Fusion Microfinance IPO issue open and close?

The Fusion Microfinance IPO opens on 2nd November and closes on 4th November.

What is the size of Fusion Microfinance IPO issue?

The size of Fusion Microfinance IPO issue is Rs.1,103.99 Cr. The fresh issue worth Rs.600 crore and an offer for sale of up to 13,695,466 equity shares.

Who are the promoters/key personnels of Fusion Microfinance?

Fusion Microfinance is promoted by Devesh Sachdev, Creation Investments Fusion, LLC, Creation Investments Fusion II, LLC and Honey Rose Investment Ltd.

What is the allotment date of Fusion Microfinance IPO?

The allotment date is set for 10th November

What is the Fusion Microfinance IPO’s listing date?

. The issue will be listed on 15th November 

Who are the book runners for Fusion Microfinance IPO?

IIFL Securities Ltd, ICICI Securities Ltd, CLSA India Pvt Ltd and JM Financial Ltd are the book running lead managers to the issue.

What is the objective of the issue?

The main objective of the issue is to augment the capital base of the company 

How to apply for the Fusion Microfinance IPO?

To apply for the IPO, follow the steps given below

•    Login to your 5paisa account and select the issue in the current IPO section

•    Enter the number of lots and price at which you wish to apply for

•    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

•    You will receive a mandate notification to block funds in your UPI app
 

Contact Details of Fusion Micro Finance IPO

Contact Information

Address

Fusion Micro Finance Limited
H-1, C Block,
Community Centre, Naraina Vihar,
New Delhi, 110028
Phone: +91- 011-46646600
Email: companysecretary@fusionmicrofinance.com
Website: https://fusionmicrofinance.com/

Fusion Micro Finance IPO Register

Address

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: fusion.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Fusion Micro Finance IPO Lead Manager

  1. ICICI Securities Limited
  2. CLSA India Private Limited
  3. IIFL Securities Ltd
  4. JM Financial Limited