Fusion Micro Finance IPO opens for subscription on November 2

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New Delhi-headquartered Fusion Micro Finance Ltd's initial public offering (IPO) will open for subscription on November 2, as the primary market gets busy yet again.

The IPO, which will close on November 4, consists of a fresh issue of Rs 600 crore and an offer for sale of up to 13.70 million shares by shareholders and promoters.

Under the OFS, Devesh Sachdev is looking to sell up to 6.50 lakh shares, Mini Sachdev up to 1 lakh shares and up to 1.40 million shares each by Honey Rose investment and Creation investments Fusion LLC.

Oikocredit Ecumenical Development Cooperative Society UA will sell around 6.61 million shares, while Global Impact Funds SCA SiCAR will sell around 3.54 million shares.

ICICI Securities, CLSA India, IIFL Securities, JM Financial are the lead managers to the issue.

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The anchor bids will open on November 1. The shares will be credited to successful bidders on November 14 and will begin trading the next day.

The proceeds from the fresh issue will be used towards augmenting its capital base to meet future capital requirements, the lender has said. As of June 2022, Fusion Micro Finance CRAR was 21.13 percent, of which tier 1 was 19.45 percent.

For the June quarter, its net interest income was Rs 184.68 crore, up from Rs124.59 crore in the year-ago period. Net profit stood at Rs75.10 crore against Rs 4.41 crore. Its gross NPA ratio was at 3.67 percent lower than 6.19 percent in the year-ago quarter. Net NPA was at 1.35 percent against 2.81 percent.

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Launched in 2010, Fusion Microfinance provides financial services to unserved and underserved women in rural and peri-rural areas across India.

For the June quarter, its gross asset under management were at Rs 73.89 billion, up 59.6 percent from the year-ago quarter.

It has 2.90 million active borrowers with a network of 966 branches and 9,262 permanent employees spread across 377 districts and 19 states and union territories, the lender said.