Fusion Finance completes ₹800 crore rights issue with 1.5x oversubscription

Fusion Finance Limited announced today the successful completion of its ₹800 crore rights issue with a 1.5 times oversubscription, demonstrating strong investor confidence in the NBFC-MFI’s growth strategy.

The shares of Fusion Finance Ltd were trading at ₹163.10 up by ₹10.37 or 6.79 per cent on the NSE today at 12.25 pm.

The rights issue, launched on April 15, 2025, comprised 6.11 million partly paid-up equity shares priced at ₹131 per share. Key institutional investors, including promoters Honey Rose Investment Ltd (an affiliate of Warburg Pincus LLC) and Creation Investments Fusion LLC, showed robust participation in the offering.

Devesh Sachdev, Managing Director of Fusion Finance, stated that the capital raised would strengthen the company’s balance sheet and position it to capitalize on emerging opportunities in the microfinance sector.

The funds will enhance Fusion’s capital adequacy ratio, further solidifying its position among India’s best-capitalized microfinance institutions. The company has also been strengthening its leadership team, recently appointing Sanjay Garyali as CEO, who brings 28 years of banking and finance experience.

Fusion Finance, founded in 2010, serves approximately 3.66 million clients, primarily underserved and unserved women entrepreneurs in rural areas. As of December 31, 2024, the company reported an Asset Under Management of ₹10,599.37 crore and operates through 1,506 branches across 22 states and 3 union territories.

IIFL Capital Services Limited served as lead manager to the issue, with CRISIL Ratings Limited as monitoring agency and Axis Bank Limited as banker to the issue.

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Published on May 12, 2025