Fusion Micro Finance — a New Delhi-based financier — is all set to begin its journey in the secondary market on Dalal Street next week. Dealers said the company commanded a premium of Rs 5-40 in the grey market — an unofficial market for unlisted securities — since its IPO, which concluded on Friday with a total subscription of three times.
Here's what the grey market trend suggests:
| Date | Grey market premium (in rupees) |
| Nov 9 | 5 |
| Nov 8 | 5 |
| Nov 7 | 10 |
| Nov 6 | 10 |
| Nov 5 | 10 |
| Nov 4 | 25 |
| Nov 3 | 40 |
| Nov 2 | 40 |
| (Source: IPO Watch) | |
Fusion Micro Finance shares will likely debut on stock exchanges BSE and NSE on November 15. Dealers expect a mildly positive listing for the company's stock.
"Since COVID, the microfinance industry has continued to underperform. The issue was richly priced at 2.3 times its book value." Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.
The Fusion Micro Finance IPO, to raise up to Rs 1,104 crore, concluded on Friday with bids for 6.3 crore shares against the 2.1 crore shares on offer with a strong response from qualified institutional investors. The IPO included the fresh issuance of shares worth Rs 600 crore.
Out of the total issue, a portion of 50 percent was reserved for QIBs, 15 percent for high-net-worth investors and 35 percent for retail investors.
Potential investors could bid for shares of Fusion Micro Finance — a New Delhi-based financier — in a price band of Rs 350-368 in multiples of 40 under the IPO.
Fusion Micro Finance saw a 4.7 percent increase in revenue to Rs 82.8 crore for the year ended March 2022 compared with the corresponding period a year ago, according to its red herring prospectus.
Brokerages held mixed views on the Fusion Micro Finance IPO.
First Published: Nov 9, 2022 9:46 AM IST
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