Fusion Micro Finance Limited plans to raise Rs 1,103.99 crore through initial public offering. The subscription for the IPO will open on November 2 and close on November 4. The price band is fixed at Rs 350-368 per equity share.
The IPO comprises of fresh issue of shares worth Rs 600 crore and offer for sale (OFS) of 1.36 crore shares. The face value is fixed at Rs 10 per equity share.
Fusion Micro Finance Limited is a financial services company catering to underserved women across India in order to facilitate their access to greater economic opportunities. According to its red herring prospectus, the company has the fourth fastest gross loan portfolio CAGR of 53.89% between the financial year 2017 and 2021 and it is among the 10 largest NBFC-MFIs in India. According to Crisil, the company had the second highest number of lender relationships among the top 10 NBFC-MFIs at the end of FY22.
The company had 2.90 million active borrowers which were served by the lender’s 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories at the end of June 2022. As of June 30, 2022, their total Asset Under Management stood at Rs 73,89.023 crore, compared to Rs 67,85.97 crore at the end of FY22, Rs 4,637.84 crore in FY21 and Rs 3,606.52 crore in FY20.
The company’s key product offerings are income-generating loans that provide capital for women entrepreneurs in rural areas to fund businesses operating in the agriculture-allied and agriculture, manufacturing and production, trade and retail, and services sectors.
The company also offers their existing customers top-up loans to manage interim working capital requirements for existing businesses as well as emergency loans to fund urgent financial needs arising as a result of unforeseen events such as health emergencies, natural disasters and family bereavements. The company benefits from a large and diversified mix of 56 lenders comprising a range of public banks, private banks, foreign banks and financial institutions.
- The company is well diversified and has extensive pan-India presence.
- Proven execution capabilities with strong rural focus.
- Access to diversified sources of capital and efficient asset liability management.
- Robust underwriting process and risk management policies.
- Technologically advanced operating model.
- Stable and experienced management team supported by marquee investors.
Profit After Tax
*All numbers are in Rs crore
Purpose of the IPO
The company proposes to utilise the net proceeds towards augmenting its capital base.
The company also expects to receive the benefits of listing of the equity shares on the stock exchanges and enhance the company’s brand name amongst their existing and potential customers and creation of a public market for their equity shares in India.
Devesh Sachdev, Creation Investments Fusion, Creation Investments Fusion II, and Honey Rose Investment are promoters of the company.
IPO subscription open date
IPO subscription close date
Rs 10 per share
Rs 350 to Rs 368 per share
Rs 1,103.99 crore
Shares aggregating up to Rs 600 crore
Offer For Sale
Book Built Issue IPO
IPO Lot Size
Small HNI (Minimum)
Large HNI (Minimum)