Global private equity firm Warburg Pincus, through its affiliate Honey Rose Investment, sold 6,457,849 shares, representing 6.4% stake for Rs 359 crore, according to bulk deals data.
Chicago-based investment firm Creation Investments Fusion, Llc has sold 3,841,172 shares, representing 3.8% stake for Rs 213 crore.
Both the entities sold shares at an average price of Rs 555.60, a discount of over 1% from the previous closing price of the stock.
Despite such a big sale, the stock rose sharply in the market due to strong buying support from domestic and foreign institutional investors.
Shares of the microfinance company ended 6% higher at Rs 596.50, while hitting a one-month high of Rs 606.85 intraday.
Morgan Stanley Asia Singapore Pte acquired 1,780,000 shares or 1.8% stake for Rs 99 crore, while Societe Generale bought 880000 for around Rs 49 crore, bulk deals data showed. Franklin Templeton Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Life Insurance, and Bajaj Allianz Life Insurance were the other buyers of the company’s shares.
Fusion Micro has been among the top performing stocks in the microfinance space, as it has given 64% returns year-to-date.
Investment in Fusion Micro Finance was Warburg’s first-ever investment in a microfinance company in 2018. The PE firm participated again in another round of fundraising by Fusion Micro in 2020.
Fusion Micro Finance then launched its initial public offering in 2022.
Several block deals in the last few days is a result of the sharp rally in the markets and stocks, particularly in the midcap and smallcap segment, prompting private equity firms to lock in partial profits.
In December, Warburg Pincus has sold shares in Computer Age Management Services, Bharti Airtel, and IDFC First Bank worth over Rs 5,000 crore, according to reports.
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