homefinance NewsFusion Micro Finance says disbursements have picked up, current monthly run rate at ₹850 crore
Fusion Micro Finance says disbursements have picked up, current monthly run-rate at ₹850 crore
Devesh Sachdev, MD & CEO of Fusion Micro Finance stated that the company does not anticipate any further stake sale by Warburg Pincus anytime soon after it sold 10% stake on December 14.
Fusion Micro Finance is currently seeing monthly disbursements run rate of around ₹850 crore, the company's MD & CEO, Devesh Sachdev told CNBC-TV18. He expects disbursements in the third quarter of the current financial year to grow at around 10-15% over the September quarter.
The company aims to reach a net interest margin (NIM) of 11.3-11.5% by the third quarter. As of September, it was 11.12%.
Sachdev also talked about the latest stake sale by key investor Warburg Pincus. He said the company does not anticipate any further stake dilution by Warburg Pincus as it is a patient long-term investor.
Warburg Pincus sold around 1.3 crore shares, translating to roughly 10% of equity, of Fusion Micro Finance at ₹599 per share during a pre-open block trade window on December 14. This transaction not only marked an increase in trading activity but also led to an impressive 8% surge in the company's share value.
Warburg Pincus held a 39.22% stake in Fusion Micro Finance through its investment vehicle, Honey Rose Investments.
Speaking about the existing stake, Sachdev mentioned that approximately 52% remains between Honey Rose and Creation, and this partnership has a horizon of 3-4 years. However, he acknowledged that there would be an eventual reduction in Warburg Pincus's overall share over the next 3-4 years.
Also Read
Warburg Pincus made its inaugural foray into microfinance with an investment in 2018, a couple of years before Fusion Micro Finance's initial public offering (IPO) in 2022.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM