Fusion Micro Finance Limited IPO GMP, Review, Price, Allotment

Incorporated in 1994, Fusion Micro Finance Ltd is engaged in providing financial services to women entrepreneurs belonging to the economically and socially destitute sections of society. The responsibility of the firm is not limited merely to providing financial support, but to sensitize clients about managing their finances through imparting Financial Literacy.

Fusion Micro Finance Ltd is one of the youngest companies in India’s Top 10 NBFC-MFIs in terms of AUM on 30th June, 2022. The Company has achieved significant scale in the entire India, where it has extended its reach to 2.90 Million active borrowers served by its network of 966 branches and 9,262 full-time employees, which are spread over 377 districts across 19 states and Union Territories of India, as of June 30, 2022.

The company’s business operates under the joint-lending group model, in which small numbers of women form a group (typically comprising between five to seven members) and guarantee loans to each other. 

As of June 30, 2022, and as of March 31, 2022, 2021, and 2020, our combined AUM was Rs. Moreover, according to CRISIL, between FY17-2021, its gross portfolio grew at the fourth highest rate, at a CAGR of 53.89 per cent, out of 10 largest Indian NBFC-MFIs. It achieved its growth by adhering to the critical pillars of growth for years, including customer focus, strategic geographical diversification with rural orientation, embracing technology to grow, focus on nurturing and developing staff, sound corporate governance, stakeholder management, and judicious risk management, and ability to raise capital for growth with support from reputed investors, even during challenging macroeconomic conditions. 

FMFL is embedded in a fundamental notion to create opportunities at the bottom of the pyramid. It provides financial services to unserved and underserved women in rural and peri-urban areas throughout India. Its networks and services improved access to formal credit at an affordable rate, thus influencing positively the lives of its customers across rural India.   

The Company has prioritised organic geographical diversification since its establishment in 2010, focusing on strategically managing risk from concentrated states while expanding to unserved rural areas, which present substantial growth opportunities. As a result, it achieved significant scale in India, where it has expanded reach to 2.90 million active borrowers served by its network of 966 branches and 9,262 full-time employees, which are located across 377 districts across 19 states and Union Territories of India, as at 30 June 2022. It believes its substantial active borrower and branch network footprint puts it in a favorable position to further expand and deepen its presence in areas in which it has established a branch infrastructure, but remains relatively untapped, as well as expand to new regions where there is considerable growth potential. Its broad, geographically diverse distribution network allows it to provide last-mile connectivity for its customers in rural, remote areas. 

According to CRISIL, FMFL has the fourth lowest gross lending book per district and the second lowest gross lending book per customer, among India’s ten largest NBFC-MFIs, for FY2022, showing better diversification and lower risks per customer. As a result of its aggressive state concentration management, it was able to sustain a lower concentration rate per AUM per state, despite growing year on year. It benefits from a broad, diverse mix of 56 lenders, comprising a mix of state banks, private banks, foreign banks, and financial institutions, as at 30 June 2022. According to CRISIL, as on 31 March 2022, it had the second highest number of lender relationships in the Top 10 Indian NBFC-MFIs.   

Technology is a component of FMFLs overall business strategy. Through its early embrace of cloud-computing software and focus on best-in-class security practices, it has built a foundation that allows for the automation and digitization of multiple processes in various business functions, including customer onboarding, customer support, loan servicing, internal audit, and risk management. FMFL continues to invest and modernize technological platforms and solutions, aiming to enforce an integrated Touch & Tech model throughout operations, which is focused on maintaining frequent, technology-enabled points of contact that improve efficiency and customer experiences. 

Fusion Micro Finance Limited IPO Important Dates

Fusion Micro Finance Limited IPO Details

Objects of the Issue

• Augment the capital base of the Company

Company Financials

Revenue, EBITDA and PAT

Cash flow

IPO Valuation – FY2022

Peer Comparison

Company Promoters

• Devesh Sachdev,
• Creation Investments Fusion, LLC,
• Creation Investments Fusion II, LLC
• Honey Rose Investment Ltd

IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: fusion.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Company Contact Information

Fusion Micro Finance Limited
H-1, C Block,
Community Centre, Naraina Vihar,
New Delhi, 110028
Phone: +91- 011-46646600
Email: companysecretary@fusionmicrofinance.com
Website: https://fusionmicrofinance.com/

Fusion Micro Finance Limited IPO GMP

Fusion Micro Finance Limited IPO Review

Fusion Micro Finance Limited IPO Subscription Details

Fusion Micro Finance IPO Subscription Details (times)

Fusion Micro Finance Limited IPO Allotment Status

Fusion Micro Finance Limited IPO Listing Performance

Fusion Micro Finance Limited IPO Listing Price is ₹360.50

FAQ

How to Apply Fusion Micro Finance Limited IPO through 5 Paisa?

1. Login to your 5paisa account and select “Fusion Micro Finance Limited IPO” in the current IPO section.
2. Enter the number of lots and price at which you wish to apply for the IPO.
3. Enter your UPI ID and click on submit.
4. You will receive a mandate notification to block funds in your UPI app.
5. Approve the mandate request on your UPI and funds will be blocked