Home Business Fusion Microfinance sets public offering price band at Rs 350-368 per share

Fusion Microfinance sets public offering price band at Rs 350-368 per share

Fusion Microfinance is expected to raise Rs 1,104 crore at the upper end of the price band.

New Delhi:

Fusion Microfinance on Friday said it has fixed a price band of Rs 350-368 per share for its initial public offering (IPO) of Rs 1,104 crore.

According to the company, the initial share sale will open for public subscription on November 2 and will end on November 4. Bids for anchor investors will open on November 1.

The IPO includes issue of equity shares worth Rs 600 crore and offer for sale of 1,36,95,466 equity shares by promoters and existing shareholders.

The sellers in the OFS are Devesh Sachdev, Mini Sachdev, Honey Rose Investment Limited, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund.

The company expects to raise Rs 1,104 crore at the upper end of the price band.

The net proceeds from the new issue will be used to augment the capital base of the microfinance firm.

The microfinance company headquartered in New Delhi provides financial services to underprivileged women across India to facilitate their access to greater economic opportunities. Half of the issue size is reserved for qualified institutional investors, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.

Investors can bid in a minimum of 40 shares and multiples thereof.

The company uses the Joint Liability Group (JLG) model developed by Grameen Bank in Bangladesh to offer loans up to Rs 50,000.

In December 2018, Warburg had invested Rs 520 crore in the company, which achieved a 45 per cent increase in assets under management in the 2018-19 financial year and had an outstanding portfolio of Rs 3,350 crore as of December 2019.

ICICI Securities, CLSA India, JM Financial and IIFL Securities are the merchant bankers to the issue.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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