Fusion CX's Rs 702 crore initial public offering is in focus on its final day of subscription, with the company planning to use a significant portion of the proceeds to repay debt and invest in artificial intelligence. The IPO had been subscribed 0.9 times, according to the NSE (as of 10:20 a.m., Oct. 16). The issue comprises a fresh issue of Rs 500 crore and an offer for sale of Rs 202 crore.
Speaking to NDTV Profit, Fusion CX promoters Pankaj Dhanuka, Chairman and Managing Director, and Kishore Saraogi, Managing Director and COO, said the fundraise would strengthen the company's balance sheet and support investments in AI-led offerings as it looks to expand its business.
Fusion CX IPO: Where Will The Money Go?
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Dhanuka said the company, which he co-founded with Saraogi in 2004, was raising capital from the public market for the first time, having operated without external investors.
Of the fresh issue proceeds, around Rs 275.7 crore will be used to repay or prepay borrowings, while approximately Rs 61.15 crore will go towards upgrading technology tools through its subsidiaries, Omind Technologies Inc. and Omind Technologies Pvt. Ltd. The remaining proceeds are earmarked for acquisitions and general corporate purposes.
Dhanuka said the debt repayment would leave the company practically debt-free, helping improve its bottom line. He added that the promoters would continue to hold more than 80% of the company even after the IPO.
Acquisitions have been an important part of Fusion CX's growth strategy over the past 15 years, and the company intends to retain that route for expansion.
Also Read: Fusion CX IPO Opens Today: 10 Key Things To Know Before You Subscribe
AI Adoption Could Support Margin Expansion
Fusion CX began as a call centre business before evolving into business process outsourcing and customer experience management. Saraogi said the company had adapted to successive technology shifts, from interactive voice response systems and robotic process automation to chatbots and voice bots.
He said the growing use of AI was changing the industry, with companies combining technology and human-led services likely to differentiate themselves.
The company has also expanded into AI data infrastructure, helping businesses prepare and clean data used to train large and small language models. Saraogi said this business, alongside its core customer experience operations, could benefit from rising AI adoption.
Addressing concerns that competition and automation could put pressure on margins, Saraogi said the appropriate use of technology could instead support margin expansion. Dhanuka described AI as a tailwind for both the core customer experience business and the newer AI data infrastructure segment.
The company's growth prospects will therefore depend on how effectively it converts AI adoption into scalable services, while using the IPO proceeds to reduce debt and strengthen its technology capabilities.
Also read: Fusion CX IPO Subscribed 12% on Day 1 So Far; Retail Portion Booked 52%
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