Fusion Micro Finance Limited - Initial Public Offer to open on November 2, 2022

Fusion Micro Finance Limited - Initial Public Offer to open on November 2, 2022

· Price Band fixed at ₹ 350 to ₹ 368 per Equity Share of face value of ₹10 each of Fusion Micro Finance Limited

· Offer will close on Friday, November 4, 2022

· Bids can be made for a minimum of 40 Equity Shares and in multiples of 40 Equity Shares thereafter

National, October 28, 2022: Fusion Micro Finance Limited (“FML” or the “Company”), proposes to open on Wednesday, November 2, 2022, an initial public offering of equity shares of face value of ₹ 10 each (“Equity Shares”) comprising of Fresh Issue of Equity Shares aggregating up to ₹ 6,000 million (“Fresh Issue”) and offer for sale of up to 13,695,466 Equity Shares (the “Offer”). The Anchor Investor Bidding Date shall be Tuesday, November 1, 2022. The Offer will close on Friday, November 4, 2022.

The Price Band of the Offer has been fixed at ₹ 350 to ₹ 368 per Equity Share. Bids can be made for a minimum of 40 Equity Shares and in multiples of 40 Equity Shares thereafter.

The Offer comprises an offer for sale of up to 650,000 equity shares by Devesh Sachdev; up to 100,000 equity shares by Mini Sachdev, up to 1,400,000 equity shares by Honey Rose Investment Ltd.; up to 1,400,000 equity shares by Creation Investments Fusion, LLC ; up to 6,606,375 equity shares by Oikocredit Ecumenical Development Cooperative Society U.A.; and up to 3,539,091 equity shares by Global Impact Funds, S.C.A., SICAR.

The Equity Shares are being offered through the red herring prospectus of the Company dated October 25, 2022 filed with Registrar of Companies, Delhi and Haryana at New Delhi (the “RHP”) and are proposed to be listed on the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”). For the purposes of the Offer, the Designated Stock Exchange shall be NSE.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“SEBI ICDR Regulations”). The Offer is being made through the Book Building Process in accordance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIB Portion”), provided that our Company through its IPO Committee in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. Further 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders (“Non-Institutional Portion”) of which one-third of the Non-Institutional Portion shall be available for allocation to Bidders with a Bid size of more than ₹ 200,000 and up to ₹ 1,000,000 and two-thirds of the Non-Institutional Portion shall be available for allocation to Bidders with a Bid size of more than ₹ 1,000,000 and under-subscription in either of these two sub-categories of Non-Institutional Portion may be allocated to Bidders in the other sub-category of Non-Institutional Portion in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price.

All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts and UPI ID (in case of RIBs), if applicable, in which the corresponding Bid Amounts will be blocked by the SCSBs or under the UPI Mechanism, as applicable. Anchor Investors are not permitted to participate in the Offer through the ASBA process. For details, see “Offer Procedure” on page 414.

All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.