Microlender Fusion Microfinance’s initial public offering (IPO), backed by global private equity major Warburg Pincus, will open for public subscription next week on Wednesday, November 2, 2022 and will end on Friday, November 4, 2022.
Fusion Microfinance IPO Involves fresh issuance of equity shares 600 crore and offer for sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders. Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd., Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund are among those who sold shares in OFS.
According to market observers, Fusion Microfinance is leading the share premium (GMP) 24 in the gray market today. The shares of the company are expected to be listed on the stock exchanges BSE and NSE on Tuesday, November 15, 2022. IPO Expected to be on Thursday, November 10, 2022.
The company said in its draft paper that it intends to use the net proceeds from the new issue to be used to increase the capital base of the microfinance firm.
The microfinance company headquartered in New Delhi provides financial services to underprivileged women across India to facilitate their access to greater economic opportunities. The company’s business runs on a joint liability group-lending model, in which a small number of women form a group (usually consisting of five to seven members) and guarantee each other’s loans.
ICICI Securities, CLSA India, JM Financial and IIFL Securities are the merchant bankers to the issue. LINK INTIME INDIA PRIVATE LIMITED is the registrar for the initial share sale.
In December 2018, Warburg had invested 520 crore in the company, which achieved 45% growth in assets under management (AUM) in 2018-19 and had an outstanding portfolio 3,350 crore as of December 2019.
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