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SKS QIP issue oversubscribed, raises Rs 230 cr

The QIP, which was launched on July 12, obtained bids worth Rs 230 crore approximately

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Microfinance today said it has raised Rs 230 crore through its qualified institutional placement (QIP), which was oversubscribed on the last day of its issue, bringing in much-needed growth capital.

The QIP, which was launched on July 12, obtained bids worth Rs 230 crore approximately, SKS said in a statement.

Announcing the closure, S Dilli Raj, Chief Financial Officer, SKS, said, the overwhelming response to the validates the relevance of micro-finance for financial inclusion in India.

SKS recently said it is raising Rs 33.50 crore through a preferential allotment of 4.45 million shares for Rs 75.40 apiece to a fund managed by existing investor WestBridge Capital Partners.

"QIP proceeds of Rs 230 crore and the proposed preferential allotment for Rs 33.50 crore aggregating Rs 263.50 crore brings in the much-needed growth capital," Dilli Raj said in the statement.

The Joint Global Coordinators and Book Runners to the QIP are Credit Suisse Securities (India) and YES Bank, it added.

These funds will help SKS strengthen its leadership position and improve the sector's prospects, SKS Managing Director and Chief Executive Officer M R Rao said.

"Most importantly, the QIP equips us to meet the credit requirements of our 4 million rural borrowers who have been waiting patiently for some time now," Rao added.

SKS's reported networth of Rs 435 crore as of March 31, 2012 would increase to Rs 700 crore (approximate) after the QIP and proposed preferential allotment, the company said.

"This capital raise reinforces the confidence reposed in us by our credit grantors and exponentially enhances our debt fund-raising ability," Dilli Raj said.

shares closed 1.65% down at Rs 80.30 apiece on the today.

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