Warburg Pincus Sells 6.4% Stake in Fusion MicroFinance

New Delhi, Dec 14 (PTI) Private equity major Warburg Pincus, through its arm Honey Rose Investment, on Thursday offloaded a 6.4 per cent stake in Fusion MicroFinance for Rs 359 crore through open market transactions.

Chicago-based Creation Investments Capital Management also divested a 3.8 per cent stake in Fusion MicroFinance for Rs 213 crore in two tranches.

ICICI Prudential Mutual Fund (MF), HDFC MF, Future Generali India Life Insurance, Bajaj Allianz Life Insurance, Morgan Stanley Asia Singapore, Goldman Sachs, Citigroup Global Markets and Societe Generale, among others, were the buyers of the shares.

Warburg Pincus, through its affiliate Honey Rose Investment Ltd, and Creation Investments Capital Management, via Creation Investments Fusion, LLC, sold the shares of the company.

Warburg Pincus' subsidiaries and Creation Investments Capital Management are promoter entities of Fusion MicroFinance.

According to the block deal data available with the BSE, Honey Rose Investment offloaded 64.57 lakh shares and Creation Investments Fusion, LLC sold 38.41 lakh shares, amounting to 6.39 per cent and 3.80 per cent stake, respectively, in the company.

The shares were sold at an average price of Rs 555.6 apiece, taking the combined deal size to Rs 572 crore.

After the transaction, Warburg Pincus' shareholding has declined to 32.83 per cent from 39.22 per cent, while Creation Investments Capital Management's stakeholding has reduced to 19.83 per cent from 23.63 per cent equity stake in Fusion MicroFinance.

On Thursday, shares of Fusion MicroFinance rallied 6.17 per cent to close at Rs 595.85 apiece on the BSE.