SKS Microfin fixes IPO price band at Rs 850-985

SKS Microfinance on Monday fixed the price band for its initial public offer (IPO) at Rs 850-985 per share, with an aim to mop up Rs 1,427.28-1,653.97 crore.

The issue of 16.8 million shares by India’s largest microfinance company will open for subscription on July 28 and close on August 2 for retail and non-institutional investors. For qualified institutional buyers (QIBs), the issue will close on July 30.

The issue comprises fresh sale of 7.45 million shares and an offer for sale of 9.35 million shares by the company’s existing shareholders. The company has proposed to offer a discount of Rs 50 per share to retail investors on the final issue price.

After the issue, the public shareholding in SKS Microfinance, which has a loan book of Rs 4,300 crore, will be 21.6 per cent. The holding of US venture capital firm Sequoia Capital will come down to 15.1 per cent from the current 22.3 per cent.

Renowned investor George Soros’ hedge fund – Quantum (M) Ltd – will hold 0.4 per cent stake in the company after the IPO, while N R Narayana Murthy’s Catamaran Management Services will own 1.3 per cent.