Fusion Micro Finance's IPO, to raise up to Rs 1,104 crore, was subscribed 12 percent on Wednesday, the first day of the bidding process. By 5 pm, the IPO of Fusion Micro Finance — a New Delhi-based financier — received bids for 26.2 lakh shares as against the 2.1 crore shares on offer, according to provisional exchange data.

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While up to 50 percent of the Fusion Micro Finance IPO is reserved for qualified institutional investors (QIB), at least 15 percent is meant for non-individual investors — or high net worth individuals — and at least 35 percent for retail investors.

Fusion Micro Finance's net interest margin — a key measure of profitability for financial institutions — has improved sequentially in the June quarter, its CEO and MD Devesh Sachdev told CNBC-TV18. "We are very hopeful and as the pricing has been deregulated, our NIM will start getting to a normalised."

"With this equity infusion and the internal accruals, we are very hopeful to get a rating upgrade and so that any future impact will get nullified," he added.

Potential investors can bid for the Fusion IPO between 10 am and 5 pm for two more days till Friday, in a price range of Rs 350-368 in multiples of 40. This translates to Rs 14,000-14,720 per lot.

The stock is likely to be listed on bourses BSE and NSE on November 15.

Should you subscribe to the Fusion Micro Finance IPO?

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.

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First Published:Nov 2, 2022 2:31 PM IST