Crisil upgrades Fusion MicroFinance rating for 2nd time in less than a year

Fusion MicroFinance on Wednesday announced that CRISIL upgraded its credit rating on the Bank Loan Facilities and Non-Convertible Debentures to A plus and gave a 'stable' outlook.

Notably, it is the second upgrade by CRISIL for Fusion Micro Finance in less than a year.

Last year in November, CRISIL gave a rating of A/Stable from A- to Fusion Micro Finance.

“We are delighted with this significant achievement of getting a second upgrade in less than 11 months. It reflects our resilience and strong business model. We remain committed to building upon our strong foundation laid over the years and creating long-term value for all our stakeholders," Fusion Microfinance founder Devesh Sachdev said.

Fusion Microfinance is touted to be one of the top Micro Finance Institutes in India. The company made a debut in the stock market last year and since stock has been on a tear.

The company was successfully able to raise ₹600 crore through an IPO done in Q3 of fiscal 2023.

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Fusion MicroFinance is up 57% from its listing price to ₹585 a share, taking its market cap to ₹5,915 crore.

The company's AUM at ₹9,712 crore as of June 2023 and is expected to have crossed ₹10,000 crore by the end of September 2023.

Fusion’s net worth improved to ₹2,445 crore in June 2023 as compared to ₹2,322 crore in March 31, 2023, and ₹1,338 crore in March 2022. The company’s adjusted gearing also improved standing at 3.4 times as on June 30, 2024, as compared to 3.3 times as on March 31, 2023.