Fusion Micro Finance ‘LISTING‘

Fusion Micro Finance Limited made a weak/disappointing debut on the stock market today.

The stock was listed at INR 359.50 (2.3% discount) on the National Stock Exchange (NSE) against the issue price of INR 368, while the opening on the BSE was at INR 360.50.

In a higher inflation rate scenario; declining in profit margins and fear of possible bad loans are some of the reasons that pull the stock price down.

The Company is among the top 10 microfinance companies in India and offers loans to women entrepreneurs.

At the end of the market, the stock of Fusion Micro Finance closed at INR 325 (almost 12% lower from its IPO price) with a volume of 1,67,28,869 shares on the NSE.

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31 Oct 2022

Fusion Micro Finance Limited – a registered NBFC (MFI) which operates in a “Joint Liability Group” lending model of Grameen is planning to raise INR 1135 Cr via IPO [Fresh Issue 600 Cr + OFS 535 Cr]

Fusion Micro Finance Limited: Company Profile

Fusion Micro Finance Limited was incorporated in the year 1994 with the core idea of creating opportunities at the bottom of the pyramid, and the company does so by providing financial services to underserved and unserved women in rural and semi-rural areas across India.

Fusion Micro Finance Limited: Business

Fusion Micro Finance is engaged in the business of providing financial services to women entrepreneurs belonging to the economically and socially deprived section of society.

The Company’s responsibilities are not restricted merely to providing financial support to women entrepreneurs but also to explaining to the clients to manage their financials by spreading Financial Literacy to them.

Fusion Micro Finance is one of the youngest companies among the top ten Non-Banking Financial Company-MFIs  in  India  in  terms  of  AUM  as  of  March  31, 2021 (CRISIL Report).

In addition, the company had the third fastest gross loan portfolio growth of 44% among the top NBFC-MFIs in India between the financial year 2018 and 2021 (CRISIL Report).

Fusion Micro Finance: Network

As of March 31, 2021, the company has 2.90 million active borrowers which were served through a network of 966 fusion microfinance branches and 9,262 employees spread across 377 districts in 19 states and union territories in India.

Company Strengths

• Well Diversified and Extensive Pan-India Presence
• Proven Execution Capabilities with Strong Rural Focus
• Robust Underwriting Process and Risk Management Policies
• Technologically Advanced Operating Business Model
• Stable and Experienced Management Team

Strategies Ahead

• Deepen, Strengthen, and Expand Geographic Presence
• Leverage its Network, Domain Expertise, and Data to Enhance Product Offering
• Continue to Diversify the Borrowing Mix and Reduce the Cost of Funds
• Customer interaction and collections
• Maintaining liquidity position and reducing our cost of funds

Promoters

1. Devesh Sachdev,
2. Creation Investments Fusion LLC,
3. Creation Investments Fusion LLC
4. Honey Rose Investment Ltd

IPO DETAILS

Dates = 02 Nov 2022 to 04 Nov 2022

Face Value (FV) = INR 10

Issue Price / Floor Price = INR 350 to INR 368

Application per Share = INR 368

Minimum Investment Amount = INR 14720

Minimum Bid = 40 Shares

Maximum Shares for Retail = N.A.

FINANCIALS

Conclusion

Considering the company’s financial parameters, FinBlab recommends AVOID ratings on fusion microfinance limited ipo

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Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Fusion Micro Finance Limited IPO – Review, Update appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Quarterly Numbers:

Spandana Sphoorty Financial Limited – a public limited company registered with Reserve Bank of India (an NBFC-MFI) has announced its financial results for quarter and year ended March 31, 2022.

On a standalone basis, the company’s total income for the period ended 31 March, 2022 stood at INR 274.85 Cr as against INR 330.67 Cr for the period ended 31 December 2022, registering a de-growth of 16.88% Q-O-Q basis. The same stood INR 465.61 Cr a period year ago, de-growth of 41% Y-O-Y basis.

Total expenses stood at INR 252.30 Cr as on 31 March 22, INR 278 Cr for the quarter ended 31 December 22. The same was INR 408.97 Cr a year ago period.

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The Company reported a PAT of INR 18.27 Cr for the quarter ended 31 March ’22 versus INR 39.73 Cr a quarter ended 31 December ’22, registering a fall of 54% Q-O-Q basis. While the y-o-y profit de-grew by 56% (INR 41.64 Cr)

EPS of the company stood at INR 2.79 as on 31-3-2022, INR 6.47 as on 31-12-2022, and INR 6.47 as on 31-3-2021.

Here is a daily chart of the company.

19-Aug-2019

Update

Spandana Sphoorty Financial Ltd debuts with moderate discount at INR 848.40

Shares of microfinance lender Spandana Sphoorty Financial Ltd managed to trim losses towards the end of the market and closed a tad below its issue price on August 19.

The stock closed at INR 848.40 on the Bombay Stock Exchange, down 0.89% against issue price of Rs 856. On the NSE, it fell 0.14% to close at INR 854.75.

However, most broking firms are positive on the stock keeping a long term view, because of (1) the strong fundamentals of the company and (2) the turnaround in the business.

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Spandana Sphoorty Financial Ltd – a leading rural focused NBFC-MFI with a geographically diversified presence in India is planning to raise INR 1200.94 Cr via IPO [Fresh Issue (INR 400 Cr) and Offer for Sale (INR 798.13 Cr to 800.94 Cr)]

Spandana Sphoorty Financial Ltd – Company Profile

Spandana was founded by Mrs. Padmaja Reddy in the year 1998 as a Society which was later transformed into an NBFC and subsequently as NBFC MFI.

Spandana Sphoorty incorporated as a public company in 2003 and registered as an NBFC with the RBI in 2004. Subsequently, the company registered as an NBFC-MFI in 2015.

As of March 31, 2018, Spandana Sphoorty Financial is the 4th largest NBFC-MFI (Micro Finance Institution) and the sixth largest amongst NBFC-MFIs and SFBs in India, in terms of AUM (Source: ICRA Research; see “Industry Overview –Benchmarking of Spandana Sphoorty Financial Limited on various parameters” on page 109)

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Spandana Sphoorty – Business Activity

The company offers income generation loans under the joint liability group model, predominantly to women from low-income households in rural areas.

The company provides

(1) Income generation loans,

(2) Business loans, and

(3) Loans against gold jewellery

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Company Products

• Abhilasha (JLG Loans) – Abhilasha stands for “Aspiration”. This unique loan is designed especially for low-income households
• Shree Loans – Shree stands for “Good Beginning”. Offered in the state of Andhra Pradesh,
• Loans Against Property (LAP) – Sometimes big ideas need small help, thus the company have designed Loan Against Property known as LAP.
• Gold Loans (Keertana) – Gold Loans are given against the mortgage of Jewellery.
• Phinix Loans – All of the company’s products are designed for the welfare and economic upliftment of the rural population majorly women.
• Interim Loans – The company ve introduced Interim loans to assist the borrowers who are struggling to meet short-term liquidity requirements.

Company Network

With that humble beginning in 1998, the organisation had 4,045 employees (including 2,746 credit assistants) operating out of 694 branches in 222 districts across 15 states in India, as on 31 March, 2018

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Competitive Strengths

• Seasoned business model with resilient performance through business cycles
• High degree of client engagement and robust risk management, leading to superior asset quality and collections
• Streamlined systems and processes and high employee productivity leading to low operating expense ratio
• Focus on the high potential and under-served rural segment
• Geographically diversified operations leading to risk containment and business resilience
• Significant industry experience from Promoter and management team

Company Promoters

Padmaja Gangireddy and Kangchenjunga Limited are the promoters of the company.

IPO Details – Price, Minimum Bid and Other

Spandana Sphoorty – Financials

CONCLUSION –

Considering the company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on Spandana Sphoorty Financial Ltd IPO

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Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Spandana Sphoorty Financial Ltd IPO: Analysis, Review, Update appeared first on Upcoming ipos: Latest news on stocks, economy & finance.