Fusion Microfinance announced on Friday that it had set a price range of Rs 350-368 per share for its initial public offering (IPO) valued at Rs 1,104 crore.
The first share sale will open for public subscription on November 2nd and close on November 4th. The tender for anchor investors will open on November 1, according to the company.
The IPO involves the issuance of new shares worth Rs 600 crore and an offer for sale of 1,36,95,466 shares by promoters and existing shareholders.
Those selling shares in OFS are Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund.
The company is expected to raise Rs 1,104 crore at the higher end of the price range.
The net proceeds from the relaunch will be used to bolster the microfinance company’s capital base.
Headquartered in New Delhi, the microfinance company provides financial services to underserved women across India to help them access greater economic opportunities. Half of the issue volume is reserved for qualified institutional investors, 35 percent for private investors and the remaining 15 percent for non-institutional investors.
Investors can bid for a minimum of 40 shares and multiples thereof.
The company uses the Joint Liability Group (JLG) model developed by Grameen Bank in Bangladesh to issue loans of up to Rs 50,000.
As of December 2018, Warburg had invested Rs 520 crore in the company which achieved 45 per cent growth in assets under management in FY 2018-19 and had an outstanding portfolio of Rs 3,350 crore as of December 2019.
ICICI Securities, CLSA India, JM Financial and IIFL Securities are the commercial banks for the issue.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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