Fusion Micro Finance Ltd IPO lists at discount of -2.31% and stays lower

Fusion Micro Finance Ltd had a tepid listing on 15th November 2022, listing at a discount of -2.31%, and closing the day well above the listing price. While the stock did show some bouts of volatility during the day, it closed more than 12% below the issue price on the first day of trading on the NSE. It also closed well below the listing price. With subscription of 2.95X overall and QIB subscription at 8.59X, the listing was expected to be moderate, at the very best. Here is the Fusion Micro Finance Ltd listing story on 15th November 2022.

Fusion Micro Finance IPO price was fixed at the upper end of the band at Rs.368 which is rather ambitious considering the rather moderate 2.95X overall subscription. The price band for the IPO was Rs.350 to Rs.368. On 15th November 2022, the stock of Fusion Micro Finance Ltd listed on the NSE at a price of Rs.359.50, a discount of -2.31% below the issue price of Rs.368. On the BSE also, the stock listed at Rs.360.50 a discount of -2.04% below the issue price.

On the NSE, Fusion Micro Finance Ltd closed on 15th November 2022 at a price of Rs.323.40. That is a first day closing discount of -12.12% on the issue price of Rs368 and a discount of -10.04% on the listing price of Rs359.50. On the BSE, the stock closed at Rs.324.90. That represents a first day closing discount of -11.71% below the issue price and a discount of -9.88% below the listing price on the stock exchange. On both the exchanges, the stock not only listed above the IPO issue price but closed Day-1 sharply below the listing price. Clearly, the tepid subscription took its toll on the first day of listing as there was a rush to exit the stock after the weak opening.

On Day-1 of listing, Fusion Micro Finance Ltd touched a high of Rs.364.80 on the NSE and a low of Rs.321.10. The discount sustained through the day. In fact, if you look at the range of prices, the stock never crossed the issue price through the day and it closed very near to the low price of the day. On Day-1 of listing, the Fusion Micro Finance Ltd stock traded a total of 167.29 lakh shares on NSE amounting to value of Rs.575.08 crore on the first day. The order book during the day showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time.

On the BSE on Day-1 of listing, Fusion Micro Finance Ltd touched a high of Rs.364.35 and a low price of Rs.321.40. The discount sustained through the day. In fact, like on the NSE, even on the BSE, if you look at the range of prices, the stock never crossed the issue price through the day and it closed very near to the low price of the day. On Day-1 of listing, the Fusion Micro Finance Ltd stock traded a total of 7.49 lakh shares on the BSE amounting to value of Rs.25.70 crore on the first day. While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time. That make it a sell on rises stock through the day.

At the close of Day-1 of listing, Fusion Micro Finance Ltd had a market capitalization of Rs.3,269.49 crore with free-float market cap of Rs.751.98 crore.