In today’s briefing:
- Fusion Micro Finance IPO – Not Worth the Premium
- LICHF: FY23 NIM Guidance Intact Despite One-Off Impact in Q2FY23
- Reddit Creates an Adoption Tsunami
Fusion Micro Finance IPO – Not Worth the Premium
- Fusion Micro Finance Ltd (1053199D IN) is looking to raise approximately US$134m in its India IPO.
- Fusion Micro Finance (FMF) is a non-banking financial company – microfinance institution (NBFC-MFI) that provides financial services to unserved and underserved women in rural and peri-rural areas across India.
- We have looked at the background of the deal in our earlier notes. In this note, we talk about its recent RHP updates, peer comparison and valuations.
LICHF: FY23 NIM Guidance Intact Despite One-Off Impact in Q2FY23
- While LIC Housing Finance (LICHF IN) posted substantial decline in NIM to 1.80% vs 2.54% QoQ, this was largely due to one-off impact from a couple of items.
- LICHF has maintained its prior guidance of beating FY22 NIM of 2.29%, which means that for full-year FY23, LICHF is still on track for a NIM of 2.3% or above.
- There was a one-off provisioning relating to INR 180cr of write-offs, which was fully provided for, but due to Ind-AS accounting had to be booked again resulting in excess provisioning.
Reddit Creates an Adoption Tsunami
- Reddit creates and adoption tsunami Bear times are build times.
- You’re probably tired of hearing this already. But if you’re still with us during these bear times, and you’re still following the news, you’re probably aware that engineers are hard at work building what will be the rails of the next great wave of adoption.
- As soon as liquidity enters back the room, crypto will be ready to onboard the first billion customers, be sure of that.
💡 Before it’s here, it’s on Smartkarma
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