SKS Microfinance likely to raise Rs 4500 crore during FY15

SKS Microfinance may raise up to Rs 4,500 crore to meet its lending requirements during the next financial year, including Rs 400 crore though diluting maximum 20% stake though the QIP route.

The company expects to raise Rs 1,500 crore of the total fund requirement through securitisation deals during next year, SKS Microfinance President S Dilli Raj said.

"We expect the portfolio outstanding will be Rs 4,000 crore by the end of the FY15. That would call for a disbursement of Rs 5,750 crore.

"The borrowing target will be over Rs 4,000 crore and up to Rs 400 crore of equity rising. So, approximately total Rs 4,500 crore we will be raising both equity and debt. Of this, Rs 1,500 crore will be through securitisation," Dilli Raj told PTI.

SKS Microfinance, the only liste micro lender, currently has operations in 15 states including Andhra Pradesh where all the MFIs face rough weather owing to Andhra Pradesh Micro Finance Institutions (Regulation of Money lending) Act, 2010.

As of now, Karnataka contributes 17.5% of the total portfolio followed by Orissa with 14.6% and Bihar and Maharashtra with 11.5% each.

"As per our internal concentration policy, no single state will contribute more than 15% to the total portfolio. Karnataka which is now at 17% of the total portfolio outstanding, will be brought down to 15% by the year end," he explained.

SKS recently said the profit during the next fiscal is expected to be at Rs 125 crore.

SKS said it has non-Andhra Pradesh portfolio outstanding of Rs 2,364 crore as of December 2013.

The company also said it has plans to raise Rs 400 crore in the next financial year by diluting maximum 20% stake though QIP route.