Warburg-backed Fusion Microfin's public issue to open on Nov 2

New Delhi: The initial share sale of microlender Fusion Microfinance, backed by global private equity major Warburg Pincus, will open for public subscription on November 2. The offer will conclude on November 4. The bidding for anchor investors will open on November 1, according to the red herring prospectus (RHP).

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

Those selling shares in the OFS are - Devesh Sachdev, Mini Sachdev, Honey Rose Investment, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund.


Net proceeds from the fresh issue will be used to augment the capital base of the microfinance firm.

The New Delhi-based microfinance company provides financial services to underserved women across India to facilitate their access to greater economic opportunities.

The company uses the joint liability group model, developed by Grameen Bank in Bangladesh, to give loans of up to ₹50,000.

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