The initial public offering (IPO) of Warbag Pincus-backed Fusion Microfinance was subscribed fully on the last date of issue opening on Friday, thanks to qualified institutional buyers (QIBs). The ₹1,104-crore IPO was subscribed nearly three times. The IPO came at a price band of ₹350-368 a share.
The IPO has received bids for about 6.30 crore shares, as against 2.1375 crore shares on offer. While the portion reserved for non-institutional investors received bids for one time, the quota reserved for retail individual investors was under subscribed to the extent of just 0.51 imes. On the other hand, QIBs’ portion saw a response of 8.69 times.
The IPO consists of a fresh issue of up to ₹600 crore and an offer-for-sale of up to 1,36,95,466 equity shares.
Anchor investors
On Tuesday, the company raised a little over ₹331 crore from anchor investors, including Nippon India Small Cap Fund, Nomura India Stock Mother Fund, Massachusetts Institute of Tech, HDFC Life Insurance, Motilal Oswal Mid Cap, BNP Paribas Arbitrage, ICICI Prudenital Banking Fund, Birla Sun Life Banking & Fin Fund, ICICI Prudential Multicap Fund and Birla Sun Life Small Cap Fund.
The net proceeds of the fresh issue will be used to augment the capital base of the microfinance firm.