Fusion Microfinance's IPO to open on November 2nd

28 Oct 2022 , 09:31 AM

On November 2, the general public will be able to subscribe to the initial share sale of microlender Fusion Microfinance, which is supported by large global private equity firm Warburg Pincus.

The promotion expires on November 4. According to the red herring prospectus (RHP), the bids for anchor investors will be accepted starting on November 1.

The IPO consists of a new equity share issue for Rs600 crore and an offer to sell 13,695,466 equity shares by the promoters and current shareholders.

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

The fresh issue’s net proceeds will be used to increase the microlending company’s capital base.

The microfinance organization, which has its headquarters in New Delhi, offers financial services to underprivileged women in India to help them access better economic possibilities.

The business offers loans up to 50,000 using the joint liability group model created by Bangladesh’s Grameen Bank.

Warburg invested Rs520 crore in the company in December 2018, and as of December 2019, it had Rs3,350 crore in its outstanding portfolio. The company saw a 45% increase in assets under management in 2018—19.

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