Fusion Micro Finance Limited is engaged in the business of financing and acts as an NBFC – Microfinance Institution. It assists and supports women entrepreneurs from rural and semi-urban areas to achieve their goals.
one of the youngest companies among the top 10 NBFC-MFIs in India in terms of Assets Under Management (AUM) as of March 31, 2021. Fusion Micro Finance had the third fastest gross loan portfolio growth of 44% among the top NBFC-MFIs in India between the financial year 2018 and 2021. Fusion uses a joint liability group model which was developed by Grameen Bank of Bangladesh and provides loans up to Rs.50,000.
The company has 2.12 million active borrowers who are being served by 725 branches and 6,351 employees, spread across 18 states and union territories. The cashless disbursements formed 89.86% of the total disbursements in FY21, amounting to Rs.3,303.4 crores.
The company focus customer segment is women in rural areas with an annual household income of up to ₹160,000. The company’s business
runs on a joint liability group-lending model, wherein a small number of women form a group (typically comprising five to seven members) and guarantee one another’s loans.
Fusion Micro Finance IPO – Details
| IPO Opening Date | 02 November 2022 |
| IPO Closing Date | 04 November 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹1103.99 Crore |
| Fresh Issue | ₹ 600 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹350 – ₹368 |
| Market Lot | 40 Shares |
| Min Order | 40 Shares (1 Lot) |
| Listing At | BSE NSE |
| Register | Link Intime India Private Limited |
| QIB Shares Offered | 50% |
| Retail Shares Offered | 35% |
| NII (HNI) Shares Offered | 15% |
Fusion Micro Finance IPO – Date Schedule
| 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 |
Fusion Micro Finance IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 40 | 14,720 |
| Maximum | 13 | 520 | 1,91,360 |
Competitive Strengths
- The company is well diversified and extensive pan-India presence;
- The company is proven execution capabilities with strong rural focus;
- Access to diversified sources of capital and effective asset liability management;
- Robust underwriting process and risk management policies;
- Technologically advanced operating model; and
- Stable and experienced management team supported by marquee investors.
Company Promoters
- Devesh Sachdev
- Creation Investments Fusion LLC
- Creation Investments Fusion II LLC
- Honey Rose Investment Ltd
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax |
|---|---|---|---|
| 31 March 2019 | 497.05 | 428.65 | 50.66 |
| 31 March 2020 | 730.31 | 630.31 | 69.61 |
| 31 March 2021 | 873.08 | 816.29 | 43.94 |
| 30 June 2021 | 264.95 | 259.53 | 4.41 |
| 31 March 2022 | 1201.34 | 1176.92 | 21.75 |
| 30 June 2022 | 360.44 | 260.31 | 75.10 |
Object Of The Issue
- Augment the capital base of the Company.
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 Micro Finance IPO Strengths
- The company is well diversified and has a pan-Indian presence with 6,351 employees in 326 districts across 18 states of India.
- They have a strong rural focus and 92.51% of the total customers as well as 69.24% of the total branches are present in rural areas.
- They have a very technologically advanced operating model which regularly reviewed and revised in order to maintain a fast paced and evolving business model.
- The company has a strong, skillful and experienced management team with the founder, Mr. Devesh Sachdev holding more than 25 years of practical experience.
Fusion Micro Finance IPO Risks
- Every Microfinance company faces inherent risks due to the category of customers it lends to. There is no other form of lending taking place.
- If there is volatility in the interest rates, it could adversely affect the company’s net interest margin and net interest income.
- An unforeseen increase in the NPAs could lead to negative effects on the cash flow, operations and overall financials of the company.
- There are certain risks that come hand in hand with the large number of branches and employees that are being handles by the bank.
Fusion Micro Finance IPO Promoter Holding
| Pre Issue Share Holding | 85.57% |
| Post Issue Share Holding | 58.10% |
Fusion Micro Finance IPO Prospectus
- Fusion Micro Finance IPO DRHP
- Fusion Micro Finance IPO RHP
- Anchor Investors in Fusion Micro Finance IPO
Company Contact Information
| Fusion Microfinance Limited H-1, C Block, Community Centre, Naraina Vihar, New Delhi, 110028, India Phone: +91-124-6910500 Email: companysecretary@fusionmicrofinance.in Website: www.fusionmicrofinance.com |
Fusion Micro Finance IPO 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 Email: fusion.ipo@linkintime.co.in Website: www.linkintime.co.in |
Fusion Micro Finance IPO Lead Manager(s)
| 1. ICICI Securities Limited 2. CLSA India Private Limited 3. IIFL Securities Limited 4. JM Financial Limited |
Fusion Micro Finance IPO FAQs
| What is Fusion Micro Finance IPO? Fusion Micro Finance IPO is a main-board IPO. The issue is priced at ₹350 to ₹368 per equity share. The IPO is to be listed on BSE NSE. |
| When Fusion Micro Finance IPO will open? The IPO is to open on 02 November 2022 for QIB, NII and Retail Investors. |
| What is Fusion Micro Finance IPO Investors Portion? The investors’ portion for QIB-50%, NII-15%, and Retail 35%. |
| How to Fusion Micro Finance IPO? You can apply Fusion Micro Finance IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Fusion Micro Finance IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Fusion Micro Finance”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Fusion Micro Finance IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Fusion Micro Finance”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Fusion Micro Finance IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Fusion Micro Finance”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Fusion Micro Finance IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Fusion Micro Finance”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Fusion Micro Finance IPO Size? Fusion Micro Finance IPO size is ₹1103.99 crores. |
| What is Fusion Micro Finance IPO Price Band? Fusion Micro Finance IPO Price Band is ₹350 to ₹368. |
| What is Fusion Micro Finance IPO Minimum and Maximum Lot Size? The minimum bid is 40 Shares with ₹14,720 amount while the maximum bid is 520 shares with ₹1,91,360. |
| What is the Fusion Micro Finance IPO Allotment Date? Fusion Micro Finance IPO allotment date is 10 November 2022. |
| What is the Fusion Micro Finance IPO Listing Date? Fusion Micro Finance IPO listing date is 15 November 2022. The IPO is to list on BSE NSE. |
