Fusion Finance has officially announced its rights issue, set to open on April 15, 2025, and close on April 25, 2025. Investors must take note of the record date, April 4, 2025, which determines eligibility for participation. Through this issue, the company plans to offer a total of 6,10,58,392 equity shares at a price of ₹131 per share, aiming to raise ₹799.86 crores.
Shareholders will be entitled to 55 rights shares for every 91 fully paid-up equity shares held as of the record date, following a 55:91 entitlement ratio. This rights issue presents an opportunity for existing shareholders to increase their stake at a set price, contributing to the company’s growth while potentially benefiting from future market performance.
Overview of Contents
About Fusion Finance Ltd
Founded in 1994, Fusion Finance Ltd is a leading non-banking financial company (NBFC) focused on microfinance lending. The company primarily provides Joint Liability Group (JLG) loans to women in groups of 5-7, secured through mutual guarantees. These loans have a tenure of 17 to 25 months, with repayments every 14 or 28 days at interest rates ranging from 19.15% to 23.40%. Apart from microfinance, Fusion Finance has expanded into MSME lending, offering loans for business growth, working capital, and productivity-enhancing purchases like mobile phones and bicycles.
The company operates in 453 districts across 22 states, with 94% of its presence in rural areas and the remaining 6% in urban regions. It has around 1,297 branches, with its top five states contributing nearly 70% of its total revenue. As of FY24, Fusion Finance disbursed ₹10,295 crore, managing ₹11,476 crore in assets, serving over 38.6 lakh customers, with a net interest margin of 11.22% and a net NPA of 0.60%. Most of its income comes from interest (87%), while the rest includes fees, commissions, and financial gains. The company’s total borrowings stood at ₹8,640 crore as of H1FY25, with an average borrowing cost of 10.1%.
However, the company has been facing financial challenges. Its Gross NPA (GNPA) ratio increased from 2.89% in March 2024 to 5.46% in June 2024, mainly due to the reclassification of 55,000 customers as bad loans. Collection efficiency also declined from 97.3% in Q4 FY24 to 96.3% in Q1 FY25, with further drops expected. Additionally, Fusion Finance reported a loss of ₹36 crore in Q1 FY25, compared to a profit of ₹505 crore in FY24, due to higher provisions of ₹348 crore, including an extra ₹208 crore in adjustments.
Fusion Finance Rights Issue Overview
| Fusion Finance Rights Issue 2025 - Key Details | Information |
|---|---|
| Total Issue Size | ₹799.86 Crores (Approx) |
| Issue Price Per Share | ₹131 |
| Face Value Per Share | ₹10 |
| Total Shares Offered | 6,10,58,392 Equity Shares |
| Eligibility Ratio | 55:91 (55 shares for every 91 held) |
| Stock Exchange Listing | NSE, BSE |
| Letter of Offer | Click here |
Fusion Finance Rights Issue 2025 Dates
| Fusion Finance Rights Issue 2025 - Important Dates | Schedule |
|---|---|
| Opening Date | 15th April 2025 |
| Closing Date | 25th April 2025 |
| Record Date for Eligibility | 4th April 2025 |
| Last Date to Purchase Shares | To be announced (2025) |
| Allotment Date (Expected) | To be announced (2025) |
| Rights Entitlement Renunciation Deadline | 21st April 2025 |
Fusion Finance Financial Overview
| Financial Year | Total Income (₹ Cr) | Total Expenditure (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|
| FY 2024 | ₹2,412.42 | ₹1,749.16 | ₹505.29 |
| FY 2023 | ₹1,799.97 | ₹1,287.99 | ₹387.15 |
| FY 2022 | ₹1,201.35 | ₹1,176.92 | ₹21.76 |
Fusion Finance Rights Issue Review
N/A
How to Apply for Fusion Finance Rights Issue 2025
Investors can apply for the Fusion Finance Rights Issue through two convenient methods:
Net Banking via ASBA (Application Supported by Blocked Amount): Shareholders can apply directly through their bank’s net banking portal using the ASBA service. This method allows the application amount to be blocked in the bank account until the shares are allotted. Most banks offer ASBA services under the IPO or Rights Issue section.
Fusion Finance Rights Issue 2025 – Allotment Status
📍 Registrar: MUFG Intime India Private Limited
📍 Address: C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai – 400 083, Maharashtra
📞 Phone: +91 810 811 4949
✉️ Email: [email protected]
🌐 Website: in.mpms.mufg.com
Fusion Finance Rights Issue 2025 – Lead Managers
🏢 Lead Manager: IIFL Securities Limited
📍 Company Address: Fusion Finance Limited, Plot No. 86, Institutional Sector 32, Gurugram, Haryana 122001, India
📞 Phone: +91 011-46646600 / +91-124-6910500
✉️ Email: [email protected]
🌐 Website: www.fusionfin.com
Fusion Finance Rights Issue 2025 – FAQs
When is the record date for the Fusion Finance Rights Issue 2025?
The record date for the Fusion Finance Rights Issue 2025 is April 4, 2025.
What is the price per share for the Fusion Finance Rights Issue 2025?
The rights issue price is set at ₹131 per equity share.
What is the entitlement ratio for the Fusion Finance Rights Issue 2025?
Eligible shareholders will receive 55 rights shares for every 91 shares held as of the record date.