Fusion Micro Finance IPO Opens Today, Check Price Band, Brokerage Suggests To Subscribe

Fusion Micro Finance initial public offering (IPO) for three-days of Rs. 1,104 crore is open for subscription today, on November 2, 2022, which will be closed on November 4, 2022. Fusion Micro, a leading NBFC will sell the shares in the range of Rs. 350-368 a piece price band. Initial public offering (IPO) means that a company is going to get listed on the stock markets.

Today, Fusion Micro Finance shares are commanding a premium (GMP) of Rs. 36 in the grey market. The company's stocks are expected to list on stock exchanges on November 15, 2022.

The IPO comprises issue consists of the issuance of fresh equity shares worth Rs. 600 crore with an offer for sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders. On the other hand, the IPO issue consists of the issuance of fresh equity shares worth Rs. 600 crore with an offer for sale (OFS) of up to 13,695,466 equity shares, worth Rs. 504 crore from the existing shareholders and promoters of the company.

Suggesting investors to subscribe to the IPO, Nirmal Bang said, "Fusion is well placed to deliver ROA/ROE in excess of 4%/20% on a sustained basis barring any unforeseen event which hampers the micro finance industry every few years. Fusion's metrics are similar to those of the largest listed MFI player viz CreditAccess, while Fusion's valuations are at a steep discount of 45% in comparison. We recommend to 'Subscribe' to the issue."

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