Fusion Micro Finance Limited IPO
i. Fusion Micro Finance was founded with the core idea of creating opportunities at the bottom of the pyramid, and they do so by providing financial services to unserved and underserved women in rural and peri-rural areas across India. The company believes network and services have improved accessibility to formal credit at affordable prices, thereby positively impacting the lives of its customers in rural India, and they were one of the youngest companies (in terms of getting an NBFC-MFI licence) among the top NBFC-MFIs in India in terms of AUM as of June 30, 2022
ii. As a result, the company has achieved a significant footprint across India, where they have extended its reach to 2.90 million active borrowers which were served through its network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories in India, as of June 30, 2022.
iii. As of June 30, 2022, the share of AUM from customers in rural areas represented 91.37% of its total AUM. Their main focus customer segment is women in rural areas with an annual household income of up to ₹300,000.
iv. Fusion Micro Finance’s key product offerings are income-generating loans that provide capital for women entrepreneurs in rural areas to fund businesses operating in the agriculture-allied and agriculture, manufacturing and production, trade and retail, and services sectors
Competitive Strengths:
- Well Diversified and Extensive Pan-India Presence.
- Proven Execution Capabilities with Strong Rural Focus.
- Access to Diversified Sources of Capital and Effective Asset Liability Management.
Objects of the Fusion Micro Finance Limited IPO:
Fusion Micro Finance Limited IPO Details:
Open Date: | Nov 02 2022 |
Close Date: | Nov 04 2022 |
Total Shares: | 29,891,304 |
Face Value: | ₹ 10 Per Equity Share |
Issue Type: | Book Built Issue |
Issue Size: | 1103.99 Cr. |
Lot Size: | 40 Shares |
Issue Price: | ₹ 350-368 Per Equity Share |
Listing At: | NSE,BSE |
Listing Date: | Nov 15 2022 |
Promoters And Management:
Financials of Fusion Micro Finance Limited IPO:
Particulars (in Cr) | March-22 | March-21 | March-20 |
Net Interest Income | 569 | 452 | 329 |
Other Income | 134 | 43 | 63 |
Total Income | 703 | 495 | 392 |
Operational Cost | 306 | 215 | 197 |
Profit before Provisioning | 397 | 280 | 195 |
Provisioning | 368 | 220 | 92 |
Profit after Provisioning | 29 | 60 | 103 |
PAT | 24 | 56 | 99 |
No. of Shares (after IPO) | 10.06 | 10.06 | 10.06 |
EPS | 2.4 | 5.6 | 9.8 |
G.NPA | 5.71% | 5.51% | 1.12% |
Recommendation on Fusion Micro Finance Limited IPO:
Fusion Micro-finance Review and Recommendation by IZ team is 6/10 1. Company was incorporated on September 5, 1994, as Ambience Fincap Private Limited and later in 2009 was takeover by Mr. Devesh Sachdev and changed name to Fusion MicrofinanceStated. It is among the top NBFC-MFIs in India in terms of AUM as of June 30, 2022. Total AUM as on 30.06.2022 is ~7300 Crores which was just ~3600 Crores in FY20. 2. As of the 30th of June in the year 2022, Fusion Micro-Finance has 966 branches and 9,262 permanent staff distributed among 377 districts in 19 states and union territories. 3. 91% loan profile is in Rural Areas and focus customer segment is women in rural areas with an annual household income of up to ₹300,000. 4. The business runs on a joint liability group-lending model, wherein a small number of women form a group (typically comprising five to seven members) and guarantee one another’s loans. 5. The key product offerings are income-generating loans that provide capital for women entrepreneurs in rural areas to fund businesses operating in the agriculture-allied and agriculture, manufacturing and production, trade and retail, and services sectors. 6. In financing business the most important parameter is cost of borrowing, the same has declined for the Fusion Micro-finance from 12.33% in Fy20 to 10.43% in Fy22. 7. The gross NPA ratio was 3.67%, 5.71%, 5.51% and 1.12%, respectively, and the net NPA ratio was 1.35%, 1.64%, 2.20% and 0.38%, respectively in Fy20, Fy21, Fy22 and 3MFy23. NPAs were high during covid-19 time but now it has reduced considerably. 8. The IPO is priced at P/B of 1.84x which looks fairly priced.
Lead Manager of Fusion Micro Finance Limited IPO:
Registrar of Fusion Micro Finance Limited IPO:
Company Address:
Discussion on Fusion Micro Finance Limited IPO:
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bro GMP is in negative?? Will it going to be paytm ?