The maiden public issue of Fusion Micro Finance has mopped up bids for 26.18 lakh equity shares against an IPO size of 2.13 crore shares, subscribing 13 percent on November 2, the first day of bidding.
The offer size has been reduced to 2.13 crore shares, from nearly 3 crore equity shares after the microfinance lender mobilised Rs 331 crore from anchor investors on November 1, a day before the issue opening.
Retail investors have bought shares 15 percent of the allotted quota and non-institutional investors put in bids 24 percent of the portion set aside for them.
Qualified institutional investors have subscribed for 1,120 shares against the reserved portion of 59.56 lakh shares.
Also read - Fusion Micro Finance IPO: Cheap valuation, smart business model but plenty of risks
Fusion Micro Finance is planning to raise more than Rs 1,100 crore through the IPO that comprises a fresh issuance of shares worth Rs 600 crore and an offer-for-sale of 1.36 crore shares by promoters and investors.
The price band for the offer, which closes on November 4, is Rs 350-368 per share.
Fusion provide financial services to underserved women across India in order to facilitate their access to greater economic opportunities. Its focus customer segment is women in rural areas with an annual household income of up to Rs 3 lakh.
Also read - Fusion Micro Finance IPO opens today | 10 things to know before subscribing to the issue
As of June 2022, the company had 29 lakh active borrowers which were served by its network of 966 branches and 9,262 employees spread across 377 districts in 19 states and union territories in India.
The company is well diversified and has extensive pan-India presence with strong rural focus. It has access to diversified sources of capital and effective asset liability management with robust underwriting process and risk management policies, Hem Securities said.
Click Here To Read All IPO Related News
The company’s stable and experienced management team supported by marquee investors indicates decent fundamentals with strong growth potential in future.
Also issue seems reasonably priced at current level but looking after industry, the brokerage recommended subscribe on issue for risk appetite investors.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
