The ₹1,104-crore initial public offering of Fusion Microfinance was subscribed 12 per cent on the first day of subscription on Wednesday. The company has fixed the price band at ₹350-368 per share and the lot size is 40 shares. The issue will close on Friday for public subscription.
The IPO of Fusion Microfinance, backed by global private equity major Warburg Pincus, received bids for about 26 lakh shares as against 2.1375 crore shares on offer. While the portion reserved for non-institutional investors received bids for 23 per cent, quota for retail individual investors was subscribed 14 per cent. QIBs are yet to subscribe.
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.
Among the shareholders who will sell shares in the OFS are Global Financial Inclusion Fund, Devesh Sachdev (founder and chairman of the Fusion Microfinance), his wife Mini Sachdev, Honey Rose Investment and two funds of Creation Investments Fusion—Dutch impact investor Oikocredit, and Ecumenical Development Co-operative Society U.A. Honey Rose and Creation Investments are owned by Warburg Pincus, which entered Fusion Microfinance in 2018 with a ₹520 crore funding.
On Tuesday, the company has raised a little over ₹331 crore from anchor investors from investors like 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.
Net proceeds of the fresh issue will be used to augment the capital base of the microfinance firm.
IIFL Securities, ICICI Securities, CLSA India and JM Financial are the managers to the offer.