The initial public offering of Microlender Fusion Microfinance, backed by global private equity major Warburg Pincus, will open for subscription on November 2.
IPO New Delhi Headquarters Fusion Microfinance Will close on 4th November. The IPO will consist of fresh issue of equity shares of 600 crore and offer for sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders.
Under the OFS, those who are selling their shares are Devesh Sachdev, Mini Sachdev, Honey Rose Investment Limited, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund.
The net proceeds from the fresh issue will be used to increase the capital base of the company microfinance strong.
Fusion Microfinance provides financial services to underprivileged women across India to facilitate their access to greater economic opportunities.
The company uses the Joint Liability Group (JLG) model developed by Grameen Bank in Bangladesh to provide maximum credit. 50,000
In December 2018, Warburg had invested 520 crore in the company, which achieved a 45 per cent increase in assets under management in 2018-19 and had an outstanding portfolio 3,350 crore as of December 2019.
ICICI Securities, CLSA India, JM Financial and IIFL Securities are the merchant bankers to the issue.
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