Fusion Microfinance's initial public offering (IPO) was met with great interest, with the subscription closing at ₹1,103.99 crore. All eyes are now set on the share allotment date, which is most likely to be tomorrow (10th November 2022). Here's what you need to know about the Fusion Microfinance IPO, including the latest GMP and how to check your share allotment status online.
Fusion Microfinance IPO GMP today
Fusion Microfinance IPO: After closure of the subscription of initial public offering (IPO) worth ₹1,103.99 crore, all eyes are now set on the share allotment date, which is most likely on 10th November 2022 i.e. on tomorrow. Those bidders who have applied for the public issue can check their application status online by logging in at the BSE website or at the website of official registrar of the public issue. The official registrar of the IPO is Link Intime Private Limited. Meanwhile ahead of share allocation announcement, grey market sentiments in regard to Fusion Microfinance IPO may not go down well among its bidders. According to market observers, shares of Fusion Microfinance are available at a premium of ₹6 in grey market today.
What this GMP mean?
GMP refers to the Grey Market Premium. This is the difference between the current market price of a security and its face value. The GMP for a particular security indicates the demand-supply situation in the grey market for that security.
A positive GMP indicates that there is more demand than supply in the grey market, while a negative GMP indicates the opposite. When an IPO is about to be launched, investors start buying and selling shares in the grey market to get an idea of how much they can expect to make from the deal.
The amount of premium that a share commands in the grey market is a function of many factors, including investor sentiment, expected price of the shares at listing, and availability of shares.
Fusion Microfinance IPO
Fusion Microfinance, a non-banking financial company (NBFC) focused on lending to under-served segments, raised Rs 1,103.99 crore from its initial public offering (IPO) that closed on Wednesday.
The IPO comprised a fresh issue of shares worth Rs 300 crore and an offer for sale of up to 1.76 crore shares by existing shareholders. The price band for the offer was set at Rs 525-526 per share.
At the upper end of the price band, the company's post-issue market capitalisation would have stood at Rs 4,814 crore.
Fusion Microfinance is promoted by Rajeev Yadav and his family members. Rajeev Yadav is also the managing director (MD) and chief executive officer (CEO) of the company.
The proceeds from the fresh issue will be used towards augmenting the company's Tier-II capital base and for meeting general corporate purposes.
Kotak Mahindra Capital Company, IIFL Securities and Edelweiss Financial Services were the bankers to the issue.
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