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Fusion Microfinance IPO: Latest GMP Ahead of Subscription Open Tomorrow

 


• Fusion Microfinance provides financial services to underserved and underserved women in rural and peri-rural areas across India


The initial public offering (IPO) of Microlender Fusion Microfinance, backed by global private equity major Warburg Pincus, will open for public subscription tomorrow i.e. November 2, 2022 and will end on Friday, November 4, 2022.


Fusion Microfinance IPO consists of issue of equity shares worth ₹600 crore and Offer for Sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders.


Those selling shares in the OFS include Devesh Sachdev (Founder and Chairman of MFI), his wife Mini Sachdev, two funds from Honey Rose Investment and Creation Investment Fusion, Dutch influence investor Oikocredit Ecumenical Development Co-operative Society and Global Financial Inclusion. Fund. Among these are funds owned by Honey Rose and Creation Investments Warburg Pincus, which entered MFIs in 2018 with a funding of ₹520 crore.


According to market observers, the shares of Fusion Microfinance are earning a premium (GMP) of Rs 36 in the gray market today. The company's shares are expected to be listed on the stock exchanges BSE and NSE on Tuesday, November 15, 2022.


Fusion Micro Finance provides financial services to underserved and underserved women in rural and peri-rural areas across India. It is one of the youngest companies to obtain NBFC-MFI license and one of the top NBFC-MFIs in India in terms of AUM as on June 30, 2022. They currently have 2.9 million active borrowers and a network of 966 branches and 9,262 permanent employees spread across 377 districts across 19 states and union territories 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. There has been a substantial increase in digital disbursements as well as a reduction in turnaround time.In Q1FY23 and FY22, the share of cashless disbursements in total disbursements stood at 96.27% and 94.38% respectively, while the average turnaround time declined from 13.2 days in FY16 to 5.1 days in FY22 The day is done," highlighted Religare Broking.

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