Fusion Microfinance IPO to List Tomorrow: Following the allotment of shares, the initial public offering (IPO) of Fusion Microfinance is set for a listing on November 15. The response to the public issues worth Rs. 1,104 crores has been relatively mild with 2.95 times subscription. The retail portion of Fusion Microfinance’s IPO was able to fetch only 0.51 times the subscription. The grey market sentiments for Fusion Microfinance Ltd.’s IPO suggest a lukewarm response during the listing. The company’s shares are available at a premium (GMP) of Rs 5 in the grey market today.
The grey market hints that Fusion Microfinance’s shares are set to get a listing at par with their price band of Rs. 350-368 per share. The GMP of Rs 5 means that the grey market is expecting the fusion Microfinance IPO listing to be around Rs 373 ( Rs 368 + Rs 5). However, the grey market can’t be trusted completely in terms of the trend as the prediction are completely speculative in nature and doesn’t necessarily be based on facts. Therefore, investors must study the company’s performance in the past and balance sheet while zeroing their investment decision.
Fusion Microfinance received a good response in the qualified institutional buyers (QIBs) category. For QIBs, 50 per cent of the offer is set aside, followed by 15 per cent for non-institutional investors and the remaining 35 per cent for individual investors. Any IPO’s QIB part must receive at least 90 per cent subscription in order to be successful.
With the issuance at a price range of Rs. 350-368 per share, Fusion Microfinance aims to raise Rs. 1,104 crores. This includes a fresh issuance for Rs 600 crore and an offer for sale for the remaining Rs 504 crore. The money from the offer for sale will go to the selling shareholders whereas the new issuance is focused to boost the company’s capital base.
With a compound annual growth rate (CAGR) of 37 per cent between FY20 and FY22, Fusion Microfinance Ltd holds the fastest gross loan portfolio among the listed NBFC-MFIs in India. The total assets under the company’s administration as of June 2022 were Rs 7,389 crore, with rural areas making up 91 per cent of that amount.
Read all the Latest Business News here
Comments
0 comment