SKS Microfinance Ltd on Friday announced the launch of its qualified institutional placement issue at a floor price of Rs 75.40 per share. The firm has the board’s approval to raise Rs 900 crore via allotment of shares.
The company, in a communication to the exchanges, said its board has also approved a preferential allotment of 4.45 million shares at Rs 75.40 a share to Kumaon Investment Holdings, an arm of WestBridge Ventures II LLC. SKS Microfinance Chief Financial Officer Dilli Raj had earlier said institutional investors are ready to invest in the company and it will finalise the share sale as and when funds were required.
SKS Microfinance may use the funds raised from the QIP to meet credit demand in non-Andhra Pradesh regions.
After facing a tough time for almost two years, SKS Microfinance has decided to focus more on non-Andhra Pradesh operations.
The country’s only listed micro-lending firm has operations in 19 states.
Recovery and lending operations of SKS were halted in Andhra Pradesh, which was known to be a hub of microfinance activity due to regulatory issues.
In December 2010, the Andhra Pradesh government passed a law, The Andhra Pradesh Microfinance Institutions (Regulation of Moneylending) Act, to regulate the lending and recovery practices by microfinance firms.
At 0937 IST, shares of SKS Microfinance were down 3.8 per cent at Rs 86.95 on the National Stock Exchange.