Fusion Micro Finance Limited IPO Details

 

Fusion Micro Finance Limited IPO

 

Fusion Micro Finance Limited IPO (Fusion Micro Finance IPO) Detail

 

Offer period

Nov 2, 2022, to Nov 4, 2022,

Price Band

₹350 to ₹368 per share

Lot Size

40 Shares

Issue Size

₹1,103.99 crores

Allotment Date

Nov 10, 2022

Listing Date

Nov 15, 2022

 

Fusion Micro Finance Limited - Company Overview

Fusion Micro Finance Ltd, founded in 1994, provides financial services to women entrepreneurs from economically and socially disadvantaged backgrounds. The company's responsibilities include financial support and educating clients on how to manage their finances through Financial Literacy.

Fusion Micro Finance Ltd is one of the top ten NBFC-MFIs in India in terms of assets under management (AUM) as of June 30, 2022.

 

Geographical Presence

As of June 30, 2022, the company had established a significant footprint in India, having served 2.90 million active borrowers through its network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories.

The company's business is based on a joint liability group-lending model, in which a small group of women (typically five to seven members) form a group and guarantee one another's loans.

The total AUM was ₹ 73,890.23 million on June 30, 2022, and ₹67,859.71 million, ₹46,378.39 million, and ₹36,065.24 million on March 31, 2022, 2021, and 2020, respectively.

 

Fusion Micro Finance Limited - IPO Synopsis

Fusion Mirco Finance filed its DRHP with SEBI in mid-August 2021, valued at more than ₹1,900 crores. On November 22nd, 2021, the company received approval from SEBI. The IPO includes a fresh issue worth ₹600 crores as well as an offer to sell up to ₹2.197 crore equity shares by the promoter and other existing shareholders. Devesh Sachdev and Mini Sachdev are selling 13 lakh and 2 lakh shares, respectively, of the equity shares put up for sale. Early investors such as Honey Rose Investment intend to sell 63.21 lakh shares, while Creation Investment intends to sell around 40 lakh equity shares.

 

Fusion Micro Finance Limited - Objectives of the IPO
  1. Increase the Company's capital base.

 

Fusion Micro Finance Limited - Financial Summary (in crore)

Period Ended

Total Assets

Total Revenue

Profit After Tax

Net Worth

Total Borrowing

31-Mar-20

4239.99

730.31

69.61

1198.89

2973.68

31-Mar-21

5837.93

873.09

43.94

1246.36

4432.25

30-Jun-21

5824.87

264.96

4.41

1251.65

4422.65

31-Mar-22

7290.48

1201.35

21.76

1337.95

5775.81

30-Jun-22

7615.24

360.45

75.1

1416.46

6009.97

 

Fusion Micro Finance Limited IPO - Pros
  1. The company is well-diversified and has a pan-Indian presence, with 6,351 employees spread across 326 districts in 18 Indian states.

  2. They have a strong rural focus, with 92.51% of total customers and 69.24% of total branches located in rural areas.

  3. They have a highly technologically advanced operating model that is reviewed and revised on a regular basis in order to maintain a fast-paced and evolving business model.

  4. The company's management team is strong, skilled, and experienced, with the founder, Mr. Devesh Sachdev, having over 25 years of practical experience.

 

Fusion Micro Finance Limited IPO - Cons
  1. Because of the type of customers, it lends to, every microfinance company faces inherent risks. There is no other type of lending going on.

  2. Interest rate volatility may have a negative impact on the company's net interest margin and net interest income.

  3. An unexpected increase in NPAs could have a negative impact on the company's cash flow, operations, and overall financials.

  4. There are certain risks associated with the bank's handling of a large number of branches and employees.

 
How to Apply for Fusion Micro Finance Limited IPO
  1. Go to https://ipo.adityatrading.in/

  2. Enter your client ID

  3. Enter the OTP received in your registered mobile number.

  4. Choose the IPO and click on apply button.

  5. Enter the UPI ID, Quantity, and Cut off price.

  6. Click on submit button

  7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

  8. You can also watch our youtube video on “How to Apply on IPO”

Post a Comment
Error message
Error message
Error message

 

DISCLAIMER

This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

<