Fusion Micro Finance Limited IPO : Key Highlights and Financials

Fusion Micro Finance Limited initiated its business operations in 1994. The company provides loans to women entrepreneurs who are socially and economically from a deprived part of the society. The company also provides financial literacy to its clients. It ranks among the top 10 Non Banking Financial Corporation’s Micro Finance Institutes list. 

Currently the company has 2.9 Million active borrowers. It also has 9262 permanent employees across 377 districts in 19 states and Union territories. It follows a special group lending model for its business. In this method a group of 5 to 7 women entrepreneurs ensure loans of each other to the company which gives more security to the company and also gets loan disbursal towards the clients in a smooth manner. 

IPO DETAILS

Fusion Micro Finance Limited IPO is set to launch on 2nd Nov., 2022. The subscription timeline extends till 4th Nov., 2022. The size for the IPO is 1103.99 Crore Rs.. Shares issued through Offer For Sale are worth 503.99 Crore Rs. Shares issued through Fresh Issue mode are worth 600 Crore Rs. The lot size is 40 shares and the price range is 350 Rs. – 368 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	2nd Nov., 2022
CLOSING DATE FOR IPO	4th Nov., 2022
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	350 Rs. – 368 Rs.
LOT SIZE	40 shares
MINIMUM ORDER QUANTITY	40 shares
ISSUE SIZE	1103.99 Crore Rs.
OFFER FOR SALE	503.99 Crore Rs.
FRESH ISSUE	600 Crore Rs
LISTING AT	NSE, BSE
LISTING DATE	15th Nov., 2022

IMPORTANT DATES

IPO OPENING DATE	2nd Nov., 2022
CLOSING DATE FOR IPO	4th Nov., 2022
IPO ALLOTMENT DATE	10th Nov., 2022
REFUNDS	11th Nov., 2022
DEMAT A/C CREDITED ON	14th Nov., 2022
IPO LISTING DATE	15th Nov., 2022

Fusion Micro Finance Limited IPO begins for subscription from 2nd Nov., 2022. The IPO subscription would continue till 4th Nov, 2022. The allotment status for the shareholders who applied would come on 10th Nov., 2022. The refunds for the ones who did not get allotment would be initiated on 11th Nov., 2022. The DEMAT accounts of shareholders would be credited on 14th Nov., 2022. The listing of the company would be accompanied on 15th Nov., 2022.

Lead Managers

The lead managers are :

• JM Financial Limited
• IIFL Securities Limited
• CLSA India Private Limited
• ICICI Securities Limited

The minimum lot size for the company is decided at 40 shares. This holding accounts to  14720 Rs.. The maximum lot size is decided at 520 shares. This amounts to 191360 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	40 shares	14720 Rs.
Maximum	520 shares	191360 Rs.

OBJECTIVES FOR THE IPO

• For General corporate purposes.
• To meet the future capital requirements.

COMPANY FINANCIALS

Particularly (in Crore Rs.)	2021-22	2020-21	2019-20
ASSETS	7290	5838	4240
Revenue	1201	873	730
PAT	21	44	69.5

The assets of the company are rising continuously. The company is actively involved in expansion activities. Also the revenue generated from the asset investment is growing with an increase in the asset base. The assets were worth 4240 Crore rs in 2019 which went on to 5836 Crore in 2021 and 7290 in 2022. However the revenue also increased from 739 Crore Rs in 2019 to 873 crore Rs in 2021 and 1201 Crore Rs in 2022. The Profits however are not satisfactory. The company’s profits have declined though there is an increase in revenue. The profits went down to 21 Crore Rs in 2022 from 69.5 Crore Rs in 2019. However the profits for 2021 were 44 Crore Rs as well which is lower than 2019 profit.

PROS

• Fusion Micro Finance Limited ranks among the top 10 Non Banking Financial Coporation’s Micro Finance Institutes list.
• It has an active borrower list of 2.90 Million.
• The company has 966 branches across India.
• Fusion Micro Finance Limited has 9262 permanent employees across 377 districts and 19 states and union territories.

CONS

• The company works in a competitive segment.

Fusion Micro Finance Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Fusion Micro Finance Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.