Microlender Fusion Microfinance, a company backed by private equity major Warburg Pincus on Monday filed its draft red herring prospectus (DRHP) with the market regulatory body Securities Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO will consist of a fresh issue of Rs. 600 crores and an offer for sale (OFS) of up to 2.19 million shares by its promoters and existing shareholders.
According to MoneyControl, those selling shares in the OFS are Devesh Sachdev, Honey Rose Investment, Creation Investments Fusion LLC, Oikocredit Ecumenical Development Co-operative Society U.A, and Global Financial Inclusion Fund.
The company stated that the proceeding from the IPO will be used for augmenting its capital base to meet future capital requirements.
As reported by MoneyControl, the organization may consider a pre IPO placement of Rs. 120 crores. If such placement is completed, the fresh issue size will be reduced.
Fusion Microfinance is a Delhi-based company that aims at providing financial aid to underserved women, to help them gain more economic opportunities. Currently, it has over 2.12 million borrowers. The microfinancing institution has 725 branches across 18 states. In December 2018, Warburg had invested Rs 520 crore in the company and saw a 45% growth in assets, MoneyControl reported.
