Fusion Microfinance

Fusion Finance shares rose on improved Q1 performance, with lower credit costs, better asset quality, narrower losses, and stronger operational efficiencies

Its impairment for financial instruments, that is credit costs, shot up to Rs 694.05 crore in Q2Fy25 from Rs 76.2 crore in Q2FY24 and Rs 348.47 crore in Q1FY25

The microfinance industry is currently facing a significant rise in delinquencies, primarily driven by increasing borrower indebtedness, apart from other factors.

The company reported a net loss of Rs 35.62 crore in June 2024 quarter due to higher than usual provisioning.

Till 09:24 AM; around 10.30 million equity shares representing 10.2 per cent of total equity of Fusion had changed hands on the BSE, the exchange data shows.

The first focus for the Gurugram-based BSE listed lender is to bring down the share of bank funding in resources to 76-77 per cent in the near term

Fusion Micro Finance on Monday reported a 32 per cent increase in net profit to Rs 126 crore in the second quarter ended September 2023, mainly driven by higher interest income. The microfinance entity had posted a net profit of Rs 95 crore in the same quarter a year ago. Its total income increased to Rs 571.26 crore in the second quarter against Rs 452.3 crore in the year-ago period, Fusion Micro Finance said in a regulatory filing. The interest income improved to Rs 496.80 crore from Rs 399.76 crore in the same quarter of the previous financial year. Net interest income (NII) increased 26.33 per cent to Rs 304.54 crore from Rs 241.07 crore in the same quarter a year ago. Its asset under management (AUM) grew by 25 per cent to Rs 10,026 crore compared to Rs 8,047 at the end of September 2022. The capital adequacy ratio of the firm further improved to 28.78 per cent as against 20.97 per cent at the end of September 30, 2022.

Analysts expect the sector to see strong loan growth in FY24 and FY25 driven by increase in ticket sizes, strong customer acquisitions, and regulatory tailwinds

Expects to NIMs to improve to 11.3-11.5% from 10.3%

On December 9, rating agency ICRA upgraded its credit rating on the company to A/Stable from 'A- / Stable'

Fusion Micro Finance has reported a multi-fold jump in net profit to Rs 95 crore for the second quarter ended September 30, mainly driven by higher interest income. The recently listed microfinance entity had posted a net profit of Rs 3.2 crore in the same quarter a year ago. This is the first quarterly number published by the company after it was listed on the stock exchanges on November 15. Its total income increased by 69.34 per cent to Rs 452.3 crore in the second quarter against Rs 267.1 crore in the year-ago period, Fusion Micro Finance said in a statement on Tuesday. The net interest income (NII) doubled to Rs 241 crore from Rs 110.4 crore in the same quarter of the previous financial year. Its asset under management (AUM) grew 54.46 per cent to Rs 8,047.1 crore compared to Rs 5,209.7 at the end of September 2021. "Profit After Tax (PAT) increased by 2,860.35 per cent year-on-year from Rs 32.11 million to Rs 950.57 million, delivering the highest quarterly PAT till date,"

Fusion Micro Finance made a dull debut on November 15, despite a confident market sentiment

CLOSING BELL: A late rally in the market, helped the benchmark indices end the rather lacklustre day with notable gains. Debutant Fusion MicroFinance ended at a 12 per cent discount to issue price.

The stock tumbled over 9 per cent to Rs 334.40 as against the issue price of Rs 368 per share on the BSE and the NSE in morning trade on Tuesday.

Stocks to Watch Today: Fusion MicroFinance set for its market debut today. Meanwhile, in the F&O segment, BHEL, GNFC, PNB and Sun TV Network are ban period on Tuesday.

Medanta Hospitals IPO subscribed 36% on day-2, Bikaji Foods by 1.5 times

The initial public offering of Fusion Micro Finance was subscribed 29 per cent on the second day of subscription on Thursday. The IPO received bids for 61,45,560 shares against 2,13,75,525 shares on offer, according to NSE data. The category meant for non-institutional investors was subscribed 61 per cent and Retail Individual Investors (RIIs) part attracted 31 per cent subscription. The IPO has a fresh issue of up to Rs 600 crore and an offer for sale of up to 1,36,95,466 equity shares. Price range for the offer is at Rs 350-368 a share. On Tuesday, Fusion Micro Finance said it has raised a little over Rs 331 crore from anchor investors. The company is expected to raise Rs 1,104 crore at the upper end of the price band. Net proceeds of the fresh issue will be used to augment the capital base of the microfinance firm. IIFL Securities, ICICI Securities, CLSA India and JM Financial are the mangers to the offer.

The initial public offering of Fusion Micro Finance was subscribed 12 per cent on the first day of subscription on Wednesday. The IPO received bids for 26,04,560 shares against 2,13,75,525 shares on offer, according to an update on the NSE. The non-institutional investors category received 23 per cent subscription and Retail Individual Investors (RIIs) portion was subscribed 14 per cent. The Initial Public Offering (IPO) has a fresh issue of up to Rs 600 crore and an offer for sale of up to 1,36,95,466 equity shares. The offer has a price range of Rs 350-368 a share. Fusion Micro Finance on Tuesday said it has raised a little over Rs 331 crore from anchor investors. The company is expected to raise Rs 1,104 crore at the upper end of the price band. Net proceeds of the fresh issue will be used to augment the capital base of the microfinance firm. IIFL Securities, ICICI Securities, CLSA India and JM Financial are the managers to the offer.

Price band set at Rs 197-207; No institutional takers for Fusion microfinance on opening day

The last time four IPOs had hit market was in Dec 2021; latest rush notwithstanding, year 2022 has been lukewarm for IPOs with sustained FPI outflows, spike in volatility, correction in broader mkts