Fusion Micro Finance IPO price band fixed at Rs 350-368; issue to open on Nov 2

New Delhi: Fusion Micro Finance's initial public offering will kick off for subscription on Wednesday, November 2. The non-banking finance company (NBFC) will sell its shares in the range of Rs 350-368 apiece.

Fusion Micro Finance is engaged in providing financial services to women entrepreneurs belonging to the economically and socially deprived section of society.

The issue consists of fresh equity shares worth Rs 600 crore with an offer for sale (OFS) of up to 13,695,466 equity shares from existing shareholders and promoters of the company.

Promoter Devesh Sachdev is looking to sell up to 6.5 lakh equity shares, Mini Sachdev up to 1 lakh equity shares, and Creation Investments Fusion and Honey Rose Investments are looking to offload 14 lakh equity shares each.

Oikocredit Ecumenical Development Cooperative Society UA will sell around 66.1 lakh shares, while Global Impact Funds SCA SiCAR will sell around 35.4 lakh shares.

The New Delhi-headquartered shadow lender's issue can be subscribed till Friday, November 4 with a bid of a minimum of 40 equity shares and then in its multiple thereof.

The net proceeds from the fresh issue will be used towards augmenting its capital base to meet future capital requirements, the lender said.

Launched in 2010, Fusion Microfinance provides financial services to unserved and underserved women in rural and peri-rural areas across India. Its gross asset under management was at Rs 73.89 billion, up 59.6% from the year-ago quarter.

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, the lender said.

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.

ICICI Securities, CLSA India, IIFL Securities, JM Financial are the lead managers to the issue, whereas Link Intime India has been appointed as the registrar to the issue.