Fusion Micro Finance IPO review by Anil Singhvi: Subscribe or avoid? Check recommendation here

Fusion Micro Finance IPO review: Fusion Micro Finance's initial public offering (IPO) is now open for subscription. The New Delhi-based microfinance company focuses on providing financial assistance to underserved women across India. The company aims to facilitate women in having access to greater economic opportunities. The company has fixed a price band of Rs 350-368 a share for its Rs 1,104 crore IPO.

According to Zee Business Managing Editor Anil Singhvi, people should subscribe for returns in the long term.

"One should subscribe to this IPO for returns in the long term. If they can make some money in the short term, nothing like that. There are chances of listing gains as well but don't expect major gains," Singhvi said.

The Zee Business Managing Editor said that the company has very experienced and clean promoters and has a very strong growth outlook.

"According to the data of the last three years that I have, the company has had very strong growth. It is a profit-making company and has good numbers and ratings. However, it has a lot of competition in the sector and valuation should have been more attractive," he added.

#IPOAlert

आज से फ्यूजन माइक्रो फाइनेंस का IPO, प्राइस बैंड ₹350-368/शेयर

फ्यूजन माइक्रो फाइनेंस कंपनी में क्या है खास?

शॉर्ट टर्म और लॉन्ग टर्म के लिहाज से क्या करें?

इश्यू को सब्सक्राइब करें या छोड़ दें?

जानिए @AnilSinghvi_ की राय...#FusionMicrofinanceIPO #investor pic.twitter.com/KzOZc5js5G

— Zee Business (@ZeeBusiness) November 2, 2022

Fusion Micro Finance has decided to allot 89,99,943 equity shares to anchor investors at Rs 368 apiece, aggregating the transaction size to Rs 331.2 crore, according to an exchange filing.

Nomura, BNP Paribas Arbitrage, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, Edelweiss Mutual Fund, Motilal Oswal Mutual Fund, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company and Kotak Mahindra Life Insurance Company are among the anchor investors.

The IPO comprises fresh issuance of equity shares worth Rs 600 crore and an offer of sale of 13,695,466 equity shares by promoters and existing shareholders.

Fusion Micro Finance IPO Allotment Date

Fusion Micro Finance IPO allotment date is November 10. Fusion Micro Finance shares will be credited into the Demat accounts of successful bidders on November 14.

Fusion Micro Finance IPO Listing Date

Fusion Micro Finance IPO will list on both the leading exchanges BSE and NSE. Fusion Micro Finance IPO listing date is November 15.

The company uses a joint liability group (JLG) model, developed by Grameen Bank in Bangladesh, to give loans of up to Rs 50,000.

In December 2018, Warburg had invested Rs 520 crore in the company which achieved a 45 per cent growth in assets under management in 2018-19 financial year and had an outstanding portfolio of Rs 3,350 crore as of December 2019.

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ICICI Securities, CLSA India, JM Financial and IIFL Securities are the merchant bankers to the issue.