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Today is the last day to subscribe for the Fusion Microfinance issue. The ₹1,104-crore initial public offering was subscribed 29 per cent on the second day of issue opening. The company has fixed the price band at ₹350-368 a share and the lot size is 40 shares.
Backed by global private equity major Warburg Pincus, the IPO has received bids for about 61.46 lakh shares, as against 2.1375 crore shares on offer. While the portion reserved for non-institutional investors received bids for 61 per cent, the quota for retail individual investors was subscribed 31 per cent. QIBs are yet to subscribe.
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Fusion Microfinance: Good to wait and watch
Fusion Microfinance’s valuations are not steep, but sector dynamics have changed significantlyThe 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.
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.
IIFL Securities, ICICI Securities, CLSA India and JM Financial are the managers to the offer.
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