A block deal has been launched to facilitate the sale of a 9.25 percent stake in Fusion Micro Finance held by Honey Rose Investment, an arm of global private equity firm Warburg Pincus, CNBC TV-18 reported on December 13.
The deal size is valued at Rs 500 crore, with the floor price set at Rs 535 per share. This marks a discount of 4.9 percent against the current market price. The NBFC's scrip settled 0.67 lower at Rs 562.75 apiece on the NSE at the end of the day's trading session.
The shares of Fusion Micro fell around 2 percent in the afternoon trade following reports that said that Warburg Pincus was looking to pare stake in the company through a block deal.
IIFL Securities is the sole broker for the deal. A lock-in period of 60 days would also come into effect when the deal is executed.
Notably, Warburg Pincus holds a 39.22 percent stake in Fusion Micro through its subsidiary Honey Rose. The New York-headquartered company has recently been on a selling spree, using the bull run in the market ushered by the results from the state elections as an opportunity to take home massive profits.
The company has already offloaded stakes in Computer Age Management Services (CAMS), IDFC First Bank and Bharti Airtel in the past week. In total, the PE firm has sold off stakes in three of its portfolio stocks, offloading shares worth over Rs 5,000 crore.
Fusion Micro, in the quarter ending September 2023, had reported a net profit of Ra 126 crore, 32 percent higher as against Rs 95 crore clocked in the year-ago period. The company's total income increased to Rs 571.26 crore compared to Rs 452.3 crore in the September 2022 quarter. The microfinance entity's shares have surged by over 52 percent year-to-date.
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