Fusion CX IPO to cut promoter stake to 80%

Fusion CX’s planned ₹702 crore IPO, or initial public offering, would cut its promoter holding to about 80%, from 96% fully diluted, The Economic Times’ ET Intelligence Group said in an Oct. 14 analysis article.

The ET Intelligence Group’s Oct. 14 analysis article said Fusion CX plans ₹500 crore of new shares for debt reduction and acquisitions, while a ₹202 crore offer for sale would let existing holders sell stock.

The structure matters because only the fresh issue brings new capital into Fusion CX. The sale portion shifts ownership from existing shareholders to public investors, and would reduce the promoter’s stake without directly adding funds to the company.

The article described the issue as suitable only for investors able to take more risk over a longer horizon. It cited faster revenue and profit growth, a plan to become debt-free after the IPO and the company’s absence of reported customer pressure on billing or delivery commitments.

Fusion CX, incorporated in 2004, provides business process outsourcing, meaning outsourced customer and back-office services, through voice, email, chat, social media and messaging channels. The company had 13,735 employees as of June 2026, up from 8,539 at the end of March 2024, according to the article.

Its operating footprint included 40 delivery centres and two sales offices across 13 countries as of June 2026. The US generated more than 77% of revenue, India about 10%, and Australia and Europe about 7% to 8% each, the article said. The top 10 clients accounted for about 50% of revenue in FY26.

Fusion CX’s revenue nearly doubled to ₹1,818 crore between FY24 and FY26, while net profit rose nearly five times to ₹169.8 crore, according to the article. Its Ebitda margin, a measure of operating profit before depreciation and amortisation as a share of revenue, widened to 18.1% from 10.6% over the period.

That margin was near the low end of the peer range of 16% to 34%, the article said. Return on equity increased to 30.3% from 13.4%, compared with a peer range of 15% to 32%.

On valuation, the article said Fusion CX is seeking a trailing FY26 price-earnings ratio of 25 on post-IPO equity. Price-earnings ratio compares a company’s market value with its profit. Based on annualised June 2026 quarter earnings of ₹55.7 crore, the multiple would be 19, against forward ratios of 31 for Firstsource Solutions, 24 for Sagility and 21 for Eclerx Services.

The company also acquired VA Platinum offshoring in the current year to expand in Australia, according to the article. ET Intelligence Group said Fusion CX has entered artificial-intelligence-related data infrastructure services, but the material provided no revenue contribution from that activity.

The main risks are exposure to overseas markets, which contribute more than 90% of revenue, and therefore to currency moves and geopolitical uncertainty, according to the article. The source did not provide the offer price, subscription dates or listing date.

Atlas360 reported on Oct. 14 that Sebi gave IPO issuers launching offers by March 31, 2027, six more months of flexibility to revise issue sizes without fresh approvals, according to officials. Fusion CX’s listing timetable was not specified in the ET article.

Source: analysis article, The Economic Times ET Intelligence Group, Oct. 14, 2026; Atlas360 background reporting, Oct. 14, 2026