The issue, which kicked off for subscription on Wednesday, sold its shares in the range of Rs 350-368 apiece to raise Rs 1,104 crore via the stake sale.
The quota for retail bidders was subscribed 0.51 times, whereas the allocation for HNI investors fetched 1.09x bids.
The quota for retail bidders was subscribed by 35%, whereas the allocation for HNI investors fetched 70% bids. The portion for institutional investors was not off the mark yet.
The issue consists of issuance of fresh equity shares worth Rs 600 crore, whereas existing shareholders and promoters of the company will offload 1,36,95,466 equity shares via offer for sale (OFS).
Incorporated in 1994, Fusion Micro Finance is engaged in providing financial services to women entrepreneurs belonging to the economically and socially deprived section of society.
The net proceeds from the fresh issue will be used towards augmenting its capital base to meet future capital requirements, the lender has said.
It has 2.90 million active borrowers with a network of 966 branches and 9,262 permanent employees spread across 377 districts and 19 states and union territories.
Brokerage firms remain mixed over the counter with a few suggesting to bid for the issue, while others remain neutral.
“It has a technologically advanced operating model and access to diversified sources of capital and effective asset liability management,” said Anand Rathi Research, which has a ‘subscribe’ rating on the issue.
“Fusion Micro is available at the upper price of the band at 1.91x P/BV with a market cap of Rs 3,703.21 crore post issue of shares and return on net worth of 1.63%,” it added, finding its valuation fairly priced.
The company has reserved 50% of shares for qualified institutional buyers, whereas non-institutional investors will get 15% of shares. The remaining 35% of shares have been allocated to the retail bidders.
The company is well diversified and has an extensive Pan-India presence with a strong rural focus. It has access to diversified sources of capital and effective asset-liability management with a robust underwriting process and risk management policies, said Hem Securities.
“Company’s stable and experienced management team supported by marquee investors indicates decent fundamentals with strong growth potential in future,” it added. “The issue seems reasonably priced at the current level but looking after the industry, we recommend ‘subscribe’ on the issue for investors with high-risk appetite.”
Fusion Micro Finance mobilised Rs 331.2 crore through anchor book ahead of its IPO launch by allotting 89.99 lakh equity shares at Rs 368 apiece to 17 investors.
, CLSA India, , are the lead managers to the issue, whereas Link Intime India has been appointed as the registrar to the issue.
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