• Offer will close on Friday, November 4, 2022
• Bids can be made for a minimum of 40 Equity Shares and in multiples of 40 Equity Shares thereafter 

NATIONAL, OCTOBER 28, 2022 (GPN): Fusion Micro Finance Limited (“FML” or the “Company”), proposes to open on Wednesday, November 2, 2022, an initial public offering of equity shares of face value of ₹ 10 each (“Equity Shares”) comprising of Fresh Issue of Equity Shares aggregating up to ₹ 6,000 million (“Fresh Issue”) and offer for sale of up to 13,695,466 Equity Shares (the “Offer”). The Anchor Investor Bidding Date shall be Tuesday, November 1, 2022.  The Offer will close on Friday, November 4, 2022.

The Price Band of the Offer has been fixed at ₹ 350 to ₹ 368 per Equity Share. Bids can be made for a minimum of 40 Equity Shares and in multiples of 40 Equity Shares thereafter.

The Offer comprises an offer for sale of up to 650,000 equity shares by Devesh Sachdev; up to 100,000 equity shares by Mini Sachdev, up to 1,400,000 equity shares by Honey Rose Investment Ltd.; up to 1,400,000 equity shares by Creation Investments Fusion, LLC ; up to 6,606,375 equity shares by Oikocredit Ecumenical Development Cooperative Society U.A.; and up to 3,539,091 equity shares by  Global Impact Funds, S.C.A., SICAR.

The Equity Shares are being offered through the red herring prospectus of the Company dated October 25, 2022 filed with Registrar of Companies, Delhi and Haryana at New Delhi (the “RHP”) and are proposed to be listed on the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”). For the purposes of the Offer, the Designated Stock Exchange shall be NSE.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“SEBI ICDR Regulations”). The Offer is being made through the Book Building Process in accordance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIB Portion”), provided that our Company through its IPO Committee in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. Further 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders (“Non-Institutional Portion”) of which one-third of the Non-Institutional Portion shall be available for allocation to Bidders with a Bid size of more than ₹ 200,000 and up to ₹ 1,000,000 and two-thirds of the Non-Institutional Portion shall be available for allocation to Bidders with a Bid size of more than ₹ 1,000,000 and under-subscription in either of these two sub-categories of Non-Institutional Portion may be allocated to Bidders in the other sub-category of Non-Institutional Portion in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price.

All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts and UPI ID (in case of RIBs), if applicable, in which the corresponding Bid Amounts will be blocked by the SCSBs or under the UPI Mechanism, as applicable. Anchor Investors are not permitted to participate in the Offer through the ASBA process. For details, see “Offer Procedure” on page 414.

All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.

Note:

Fusion Micro Finance Limited was one of the youngest companies (in terms of getting an NBFC-MFI license) and among the top NBFC-MFIs in India in terms of AUM as of June 30, 2022, according to CRISIL. In addition, it had the fourth fastest gross loan portfolio CAGR of 53.89% between the financial years 2017 and 2021 among the 10 largest NBFC-MFIs in India, according to CRISIL. The Company prioritized organic geographic diversification since inception in 2010, with a focus on strategic management of state concentration risk by expanding into underpenetrated rural areas that offer significant growth opportunities. As a result, the Company achieved a significant footprint across India, where it has extended its reach to 2.90 million active borrowers which were served through its network of 966 branches and 9,262 permanent employees spread across 377 districts in 19 states and union territories in India, as of June 30, 2022. According to CRISIL, the Company had the fourth lowest gross loan portfolio per district and second lowest gross loan portfolio per customer among the top ten NBFC-MFIs in India, for the financial year 2022, demonstrating better diversification and lower risk per customer. Technology is an integral part of Company’s overall business strategy. Through its early adoption of cloud computing software and emphasis on best-in-class security practices, the Company has established a foundation in enabling automation and digitalization of several processes across its business functions including customer onboarding, customer service, loan disbursements, internal audit and risk management.

The RHP is available on SEBI website at www.sebi.gov.in as well as on the website of the lead managers, i.e., ICICI Securities Limited, CLSA India Private Limited, IIFL Securities Limited and JM Financial Limited at www.icicisecurities.com, www.india.clsa.com, www.iiflcap.com and www.jmfl.com and the websites of BSE Limited and National Stock Exchange of India Ltd at www.bseindia.com and www.nseindia.com, respectively.