Fusion Micro Finance Ltd was founded in 1994 and is specialized in offering financial services to women business owners who come from economically and socially disadvantaged backgrounds. Fusion Micro Finance LTD IPO will make its stock market debut on November 15, 2022, and is one of the top ten non-banking finance companies-micro finance institutions (NBFC-MFIs) in India.
Fusion Micro Finance LTD IPO Details
| IPO Date | Nov 2, 2022 to Nov 4, 2022 |
| Listing Date | 15 Nov 2022 |
| Face Value | ₹10 per share |
| Price | ₹350 to ₹368 per share |
| Lot Size | 40 Shares |
| Issue Size | [.] shares of ₹10 (Aggregating up to ₹1,103.99 Cr) |
| Fresh Issue | [.] shares of ₹10 (Aggregating up to ₹600.00 Cr) |
| Offer for Sale | 13,695,466 shares of ₹10 (Aggregating up to ₹[.] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Company Promoters | The promoters of the Company, namely, Devesh Sachdev, Creation Investments Fusion, LLC, Creation Investments Fusion II, LLC and Honey Rose Investment Ltd |
Fusion Micro Finance LTD IPO Tentative Dates
| Event | Tentative Date |
| Opening Date | Nov 2, 2022 |
| Closing Date | Nov 4, 2022 |
| Basis of Allotment | Nov 10, 2022 |
| Initiation of Refunds | Nov 11, 2022 |
| Credit of Shares to Demat | Nov 14, 2022 |
| Listing Date | Nov 15, 2022 |
Inox Green IPO: GMP, Issue Size, Issue Price
Fusion Micro Finance LTD Industry Overview
In contrast to previous trends, bank loans and deposits are primarily concentrated in the southern and western regions. Eastern and northern regions’ levels are very low. Deposit penetration has grown by in the southern area.
The rate increased by 700 basis points on-year to 29% in the fiscal year 2021 and has remained unchanged in the fiscal year 2022. At the end of the fiscal year 2022, the southern area will account for 25% of total deposits. Considering both financial Between the years 2018 and 2022, the northern region’s proportion of banking deposits stayed constant at 21%. By way of Northern region’s proportion of banking credit has slightly decreased from 22% in the fiscal year 2018 to 21% in the 2022 fiscal year.
Fusion Micro Finance LTD Company Overview
Fusion Micro Finance LTD offers financial services to underprivileged women across India to help them access more lucrative employment prospects. The business provides loans up to $50,000 using a joint liability group (JLG) concept created by Bangladesh’s Grameen Bank. It is one of the newest businesses to receive an NBFC-MFI license, and as of June 30, 2022, it ranked among the top NBFC-MFIs in India in terms of AUM.
Fusion Micro Finance, which has 2.90 million active borrowers as of June 30, 2022, served them through a network of 966 branches and 9,262 permanent workers dispersed over 377 districts in 19 Indian states and union territories. Each of its relationship officers was in charge of managing an average of 487 active borrowers as of June 30, 2022, down from averages of 466, 513, and 494 active borrowers as of March 31, 2022, 2021, and 2020, respectively.
Fusion Micro Finance LTD IPO Objectives
The Following are the objectives of the issue:
Augment the capital base of the Company.
Fusion Micro Finance LTD Financials
Fusion Micro Finance LTD Strengths
- No single state contributes more than 20% of the lender’s total AUM, demonstrating diversification
- Runs on a joint liability group-lending model, wherein women within the group provide guarantees for loans obtained by each member of the group
- This model ensures credit discipline through peer support within the group
Fusion Micro Finance LTD Weaknesses
- Its customers generally have limited sources of income, savings and credit histories
- Increase in NPAs or bad loans could impact the business adversely
- Restriction on lending. As per regulations, not more than two NBFC-MFIs may lend to the same borrower
Company Contact Information
Fusion Micro Finance Limited
H-1, C Block,
Community Centre, Naraina Vihar,
New Delhi, 110028
Phone: +91- 011-46646600
Email: companysecretary@fusionmicrofinance.com
Website: https://fusionmicrofinance.com/
Fusion Micro Finance IPO Registrar
Phone: +91-22-4918 6270
Email: fusion.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Fusion Micro Finance IPO Lead Manager(s)
ICICI Securities Limited (Past IPO Performance)
CLSA India Private Limited (Past IPO Performance)
IIFL Securities Ltd (Past IPO Performance)
JM Financial Limited (Past IPO Performance)
