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| India's first IPO by microfinance firm to open on July 28 |
| Press Trust of India / New Delhi Jul 13, 2010, 16:32 IST |
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SKS Microfinance's public offer, through which it expects to mop up as much as Rs 1,300 crore, will hit the capital market on July 28.
The initial public offering, the first such issue by any microfinance company in the country, will be launched between July 28 and July 30, sources close to the development said today.
"The company has received approval from the Securities and Exchange Board of India and, most probably on Monday, it will file the red herring prospectus," sources said.
The Hyderabad-based firm is entering the primary market with 1.69 crore equity shares of Rs 10 each, and expects to raise funds in the range of Rs 1,200 crore to Rs 1,300 crore, they added.
The proceeds from the IPO would be used for meeting the company's future capital requirements. SKS Microfinance Founder and Chairperson Vikram Akula declined to comment on the date of the IPO launch, but said it will hit the market soon.
He further said that the company has received encouraging responses from institutional investors, and the IPO would attract some big firms when it opens. "We are in talks with institutional buyers and they have shown interest in the issue," he told PTI.
Founded by Vikram Akula, SKS Microfinance has a customer base of around 53 lakh people.
SKS, which offers loans with an average ticket size of Rs 7,000, has so far raised around Rs 13,000 crore debt on a cumulative basis from various investors to meet its funding requirements.The non-banking firm has back-up from several big private equity players, including Sequoia Capital-India.
Catamaran Management Services, a fund run by Infosys co- founder and chief mentor NR Narayana Murthy, has also made an investment in SKS. Funding in SKS was the first investment of Catamaran.
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