Fusion Micro Finance Limited was one of the most recent additions to India’s top ten NBFC-MFIs in terms of assets under management (AUM) as of March 31, 2002. Furthermore, according to CRISIL, they experienced the third quickest gross loan portfolio growth of 44 percent among India’s top NBFC-MFIs throughout 2018 and 2021. Fusion MicroFinance IPO will hit the market in 02 November 2022.
Table of Contents
About Fusion Microfinance IPO
Fusion Micro Finance Limited was formed with the goal of generating possibilities for women at the bottom of the pyramid, and they accomplish this by offering financial services to unserved and underserved women in rural and peri-rural regions across India.
Their network and services, they think, have increased access to formal credit at reasonable rates, therefore improving the lives of their clients in rural India.
They think they have accomplished this by adhering to their main growth pillars of client centricity, deliberate geographic diversification with a rural focus, implementing innovative for development, and a focus on nurturing and developing their people over time.
Footprints
Since their beginning in 2010, They’ve focused organic geographic expansion, with an emphasis on strategic control of state concentration risk by growing into underserved rural regions with considerable development potential.
As a consequence, as of March 31, 2021, they had established a strong presence in India, serving 2.12 million active borrowers through their network of 725 branches and 6,351 permanent staff spread over 326 districts and 18 states and union territories in India.
They think that their large number of active borrowers and branch network puts them in a strong position to expand and extend their reach.
Business Model
They can provide “last-mile” access to Their clients in remote rural regions because to their vast and geographically varied distribution network.
For the financial year 2021, they were ranked second among the top ten NBFC-MFIs in India in terms of least portfolio density from the biggest state.
They had the smallest gross loan portfolio per district and per client among the top ten NBFC-MFIs in India, displaying better expansion and reduced risk per client, according to CRISIL.
Despite their expansion over the years, they have been able to preserve low levels of AUM concentration per state as a consequence of their careful control of state focus.
Fusion Microfinance IPO
Fusion Micro Finance limited, headquartered in Kolkata has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 600 Crore & 2,19,66,841 equity shares on 10 August 2021.
The Offer includes 600 Crore value fresh equity shares and There is an offer for sell(OFS) of 2,19,66,841 equity shares by the promoters mentioned in the DRHP.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 5,837.93 | 4,239.99 | 3,610.52 | ||
| Total Revenue | 873.09 | 730.31 | 497.05 | ||
| Profit After Tax | 43.94 | 69.61 | 50.67 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 5.56 | 5.49 | 3 |
| Financial Year 2020 | 10.47 | 10.32 | 2 |
| Financial Year 2019 | 10.49 | 10.35 | 1 |
| Weighted Average | 9.66 | 9.53 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are some of the qualitative considerations and key strengths that contribute into determining the Offer Price:
- Their pan-India footprint is well-diversified and broad.
- With a strong rural focus, they have demonstrated execution skills.
- access to a variety of funding sources and efficient asset liability management
- Risk management rules and a thorough underwriting procedure
- Operational model that is technologically advanced
- The company is led by a solid and experienced management team who is backed by major investors.
Fusion Microfinance IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Credit Access Grameen Limited | 78.53 |
| 2 | 10 | Spandana Sphoorty Financial Limited | 29.94 |
| 3 | 10 | Bandhan Bank | 22.27 |
| 4 | 10 | Ujjivan Small Finance Bank | 582.00 |
| 5 | 10 | Suryoday Small Finance Bank Limited | 159.73 |
Fusion Microfinance IPO Details
| IPO Opening Date | 02 November 2022 |
| IPO Closing Date | 04 November 2022 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 350 to 368 per equity share |
| Market Lot | 40 |
| Min Order Quantity | 14,720 |
| Listing At | BSE, NSE |
| Issue Size | 1,103.99 Cr |
| Fresh Issue | 600 Crore |
| Offer for Sale | 2,19,66,841 equity shares |
Fusion Microfinance IPO Date
Fusion Microfinance IPO opening date is 02 November 2022, and the closing date is 04 November 2022. The issue may list in 15 November 2022.
| IPO Open Date | 02 November 2022 |
| IPO Close Date | 04 November 2022 |
| Basis of Allotment Date | 10 November 2022 |
| Initiation of Refunds | 11 November 2022 |
| Credit of Shares to Demat Account | 14 November 2022 |
| IPO Listing Date | 15 November 2022 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
Fusion Microfinance IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Fusion Micro Finance IPO .
Fusion Microfinance IPO GMP
Fusion Micro Finance IPO Grey Market Premium is 0.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 | |||
| November 2022 |
Fusion Microfinance IPO Review
Fusion Micro Finance IPO review : If you are looking for answer of Fusion Micro Finance IPO is good or bad than you can avoid this IPO.
Fusion Microfinance IPO Risk
- The impact of the Coronavirus disease on their business in the future is unknown and impossible to predict.
- An increase in our nonperforming assets (NPAs) or provisions might have a negative impact on their company.
- Any disruption in their financing sources or an increase in finance expenses might have a negative impact on their liquidity.
- Due of their vast number of branches and extensive network of operations, they may encounter a variety of hazards.
- Certain sections of the NBFC-ND-SI Master Directions place restrictions on their operations.
- Noncompliance with statutory AML and KYC standards may expose them to extra responsibility, as well as hurt their business and image.
Other Threats
- Any breakdown, shortcoming, or security breach in their information technology systems might have a negative impact on their operations.
- Any reduction in their credit ratings might limit their access to financing and debt markets, which could have a negative impact on their company.
- Concerns regarding the financial parameters of their loans may have a negative impact on their reputation.
- Cash accounts for a substantial percentage of their client collections and disbursements, exposing them to certain operational risks.
- They’ve engaged in related-party transactions that might lead to a conflict of interest.
- Their Directors are the subject of ongoing judicial actions. Any negative outcomes might have a negative impact on their business.
Fusion Microfinance IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Fusion Microfinance IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 02 November 2022 | 1 | |||||
| 03 November 2022 | 2 | |||||
| 04 November 2022 | 3 |
Promoters
- Devesh Sachdev
- Creation Investments Fusion LLC
- Creation Investments Fusion II LLC
- Honey Rose Investment Ltd
Promoter Holding
| Pre Issue Share Holding | 85.21% |
| Post Issue Share Holding |
Fusion Microfinance IPO Prospectus
Contact Details
Fusion Microfinance Limited
H-1, C Block, Community Centre, Naraina Vihar,
New Delhi, 110028, India
Telephone: +91-124-6910500
E-mail: [email protected]
Website: www.fusionmicrofinance.com
Registrar
Link Intime India Private Limited
C 101, 247 Park, L. B. S. Marg
Vikhroli (West), Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- ICICI Securities Limited
- CLSA India Private Limited
- IIFL Securities Limited
- JM Financial Limited
We hope we are able to answer all your questions about Fusion Microfinance IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Fusion Microfinance IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Fusion Microfinance IPO of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Fusion Microfinance IPO Opening Date?
Fusion Microfinance IPO will open on 02 November 2022.
Fusion Microfinance IPO Listing Date?
Fusion Microfinance IPO will list on 15 November 2022.
Fusion Microfinance IPO GMP Today?
Fusion Microfinance IPO Grey Market Premium is INR 0.
Fusion Microfinance IPO Allotment Date?
Fusion Microfinance IPO basis of allotment will be on 11 November 2022.
Lot size for Fusion Microfinance IPO?
Lot size for Fusion Microfinance IPO is 40.
