scorecardresearchNew IPO Alert: Fusion Microfinance sets IPO price band at ₹350-368 per share

New IPO Alert: Fusion Microfinance sets IPO price band at 350-368 per share

Updated: 28 Oct 2022, 01:18 PM IST
TL;DR.
  • Fusion Microfinance IPO: The initial share sale will open for public subscription on November 2 and conclude on November 4. The bidding for anchor investors will open on November 1, according to the company.
Vedant Fashions IPO

Vedant Fashions IPO

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

The initial share sale will open for public subscription on November 2 and conclude on November 4. The bidding for anchor investors will open on November 1, according to the company.

The IPO comprises fresh issuance of equity shares worth 600 crore and an offer of sale of 1,36,95,466 equity shares by promoters and existing shareholders.

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

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

Net proceeds from the fresh issue will be used to augment the capital base of the microfinance firm.

The New Delhi-headquartered microfinance company provides financial services to underserved women across India to facilitate their access to greater economic opportunities.

Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

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

The company uses the joint liability group (JLG) model, developed by Grameen Bank in Bangladesh, to give loans of up to 50,000.

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

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

 

First Published: 28 Oct 2022, 01:17 PM IST