CAM, JSA act on ₹799.86 crores rights issue by Fusion Finance

By Admin

22 May, 2025

Fusion Finance Limited, a leading non-banking financial company (NBFC) and microfinance institution, has launched a significant Rights Issue worth approximately ₹799.86 crores. The offering involved up to 6,10,58,392 partly paid-up equity shares, marking a pivotal step in the company’s strategic growth and capital enhancement plans.

Details of the Rights Issue

The issue was offered at ₹131 per share (including a ₹10 face value and ₹121 premium), structured in a 55:91 rights ratio. Eligible shareholders as of April 4, 2025, had the opportunity to participate during the subscription window from April 15 to April 25, 2025. Applicants were required to pay ₹65.50 on application, with the remaining balance payable in subsequent calls scheduled up to March 2027.

Legal Advisors Behind the Transaction

Cyril Amarchand Mangaldas (CAM) played a critical advisory role, guiding Fusion Finance and its promoters – global private equity firms Warburg Pincus and Creation Investments – throughout the rights issue process. The CAM transaction team was led by Vishal Yaduvanshi (Partner, Regional Co-Head Markets Practice – Northern Region) and Abhyuday Bhotika (Partner), with support from Mihir Mathur (Senior Associate), and associates Rajshree Agarwal, Nimisha Sharma, Kaartikay Agarwal, and Sanskar Modi. Vasudha Goenka (Partner) and Navjot Chhabra (Associate) also contributed, advising on key aspects related to securities laws.

On the other side, J. Sagar Associates (JSA) advised IIFL Capital Services Limited, the Lead Manager for the rights issue. The JSA team was led by Madhurima Mukherjee Saha (Lead Partner), alongside Anuj Pethia (Partner), Bhavini Mohan (Senior Associate), and associates Kumar Shubham, Anshuman Singh, and Devina Chopra.

Promoter Participation and Market Response

Notably, prominent investors, including Warburg Pincus affiliate Honey Rose Investment and Creation Investments, actively participated in the offering, reinforcing confidence in Fusion Finance’s growth story. The proceeds from the rights issue are earmarked to strengthen the company’s capital adequacy and accelerate the expansion of its microfinance operations.

Following the announcement of the rights issue, Fusion Finance’s stock witnessed a sharp uptick, gaining over 7% in value — a clear reflection of positive market sentiment and investor trust.

About Fusion Finance Limited

Fusion Finance Limited is dedicated to delivering essential financial services to underserved and unserved women across rural, semi-urban, and urban regions in India. Targeting households with annual incomes of up to ₹3,00,000, the company has been a key player in empowering women economically and fostering inclusive growth in the Indian financial sector.

This rights issue further solidifies Fusion Finance’s mission to create lasting financial impact across India’s grassroots communities.