Fusion Microfinance IPO comprises fresh issuance of equity shares worth ₹600 crore and an offer of sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders.
Those selling shares in the OFS are Devesh Sachdev (founder and chairman of the MFI), his wife Mini Sachdev, Honey Rose Investment and two funds of Creation Investments Fusion, the Dutch impact investor Oikocredit Ecumenical Development Co-operative Society, and Global Financial Inclusion Fund. Of these, Honey Rose and Creation Investments are funds owned by Warburg Pincus which entered the MFI in 2018 with a ₹520 crore funding.
As per market observers, Fusion Microfinance shares are commanding a premium (GMP) of ₹36 in the grey market today. The company's shares are expected to list on stock exchanges BSE and NSE on Tuesday, November 15, 2022.
Fusion Micro Finance provides financial services to unserved and underserved women in rural and peri-rural areas across India. It is one of the youngest companies in terms of getting an NBFC-MFI license and among the top NBFC-MFIs in India in terms of AUM as of June 30, 2022. They currently have 2.9 mn active borrowers and a network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and UT in India.
“The company follows well defined IT services since inception. Their current platforms support mobile customer onboarding, paperless loan processing, real-time application tracking and credit checks, cloud computing, real time notifications, etc. This has yielded substantial increases in digital disbursements as well as a decrease in turnaround time. In Q1FY23 and FY22, the share of cashless disbursements in total disbursements was 96.27% and 94.38%, respectively, while average turnaround time decreased from 13.2 days in FY16 to 5.1 days in FY22," highlighted Religare Broking.
