The share allotment status of Fusion Micro Finance’s initial public offering (IPO) would be finalised on Thursday. The initial share sale of microfinance lender got subscribed 2.95 times on the last day of bidding (November 4). The public offer received bids for 6,30,35,880 shares against 2,13,75,525 shares on offer, BSE data showed.
The non-institutional investors’ category received 1.38 times subscription, while qualified institutional buyers (QIBs) got subscribed 8.59 times. The retail individual investors’ portion was booked 51 per cent, taking the total IPO subscription to 2.95 times.
With a price range of Rs 350-368 a share, the IPO included a fresh issue of up to Rs 600 crore and an offer for sale (OFS) of up to 1,36,95,466 equity shares.
Fusion Micro Finance raised Rs 331 crore from anchor investors ahead of its IPO.
Here’s how to check the share allotment status on BSE:
* Open https://www.bseindia.com/investors/appli_check.aspx on your browser;
* Select ‘Equity’ option and issue name тАУ ‘Fusion Micro Finance’ from the dropdown;
* Enter your application number and PAN (Permanent Account Number) details
* Check ‘CAPTCHA’ and click submit to view the status.
Latest grey market premium
Market participants said Fusion Micro Finance IPO’s grey market premium (GMP) is around Rs 5 today. It implies that the grey market is expecting the lender to list around Rs 373 (Rs 368 + Rs 5), which is 1.35 per cent higher than the IPO’s upper band price of Rs 368 per equity share.
“On the operational front, the top line is growing somewhat while the bottom line remains inconsistent. The issue looks richly priced at over 2.27 times its book value. Also, the clash of multiple IPOs may divide investors’ participation,” Manan Doshi, UnlistedArena.com, told Business Today.
Brokerage view
Angel One has a ‘Neutral’ rating on the issue. It believes investors may consider investing in Fusion Micro Finance from a medium to long-term perspective.
ICICIdirect said competition from other MFIs, banks and financial institutions and substantial collections and disbursements in cash are among key risks. The brokerage didn’t rate the IPO.
Meanwhile, the company stated that net proceeds of the fresh issue would be used to augment the capital base of the microfinance firm.
IIFL Securities, ICICI Securities, CLSA India and JM Financial were the managers of the offer.
