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Fusion Micro Finance's Rs 1,104 crore IPO hits Street — all you need to know about this New Delhi-based lender

Fusion Micro Finance's Rs 1,104 crore IPO hits Street — all you need to know about this New Delhi-based lender

Fusion Micro Finance's Rs 1,104 crore IPO hits Street — all you need to know about this New Delhi-based lender
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By Sandeep Singh  Nov 2, 2022 10:15:20 AM IST (Updated)

Fusion Micro Finance IPO: Bidding for Fusion shares will be available at Rs 14,000-14,720 per lot under the IPO. 

Fusion Micro Finance's IPO worth up to Rs 1,104 crore hit Dalal Street on Wednesday, November 2. A New Delhi-based financier, Fusion provides

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a slew of products including microfinance and MSME loans and machinery loans. The IPO includes fresh issuance of shares worth up to Rs 600 crore.

Here are some of the important things to know about the Fusion Micro Finance IPO:
Important dates: The IPO will be available between 10 am and 5 pm on three trading days till Friday. The basis of allotment is likely on November 10, and listing of shares on stock exchanges BSE and NSE on November 15.
Issue price: Potential investors will be able to bid for Fusion Micro Finance shares within a price band of Rs 350-368 in multiples of 40. This means one lot will cost Rs 14,000-14,720 for bidding under the IPO.
Investor categories: Up to 50 percent of the IPO is reserved for qualified institutional investors, at least 15 percent for non-individual investors and at least 35 percent for retail investors.
Promoters: Devesh Sachdev, Creation Investments Fusion, Creation Investments Fusion II and Honey Rose Investment are the promoters.
Financials: Fusion Micro's revenue increased 4.7 percent to Rs 82.8 crore for the year ended March 2022 compared with the corresponding period a year ago, according to its red herring prospectus.
Should you subscribe to the Fusion Micro Finance IPO?
Brokerages have mixed views on the issue.
According to Angel One, Fusion Micro Finance's valuation is reasonable, given strong tailwinds in the banking sector, the uptick in the credit cycle and strong financial results of the company for the quarter ended June 2022.
Fusion's post-issue price-to-earnings multiple turns out to be 168 times its diluted earnings per share for the year ended March 2022 at the upper end of the price range, according to the brokerage.
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