Fusion Microfinance is in the limelight; from its close of Rs.561.20, it opened today at Rs.587.85 and rose further to Rs.606.45. Its 52-week high is at Rs.690.15. The mind boggling 555-times jump in volumes indicates a block deal. And that’s precisely what is happening.
The news is that global PE firm, Warburg Pincus is selling stake in the company via a block deal today. The pre-block window showed that 1.3 crore shares or 10% stake was sold a Rs.599/share.
The seller is said to be its associate company who is also the promoter of Fusion, Honey Rose Investment. Reports from CNBC TV 18 suggest that the deal was to happen at a 5% discount to yesterday’s closing price at Rs.535/share but it actually went through today at a premium of 6.4%, with a total value of Rs 778.7 crore.
Honey Rose held 39.22% stake in the company and post this stake sale, it will come down to 29.22%.
Fusion Microfinance, as the name suggests, provides microfinance and and MSME loans, machinery loans, small business loans in India, business financing etc. Its USP is that its clients comprise mainly of women living in rural and semi-urban areas.