The inaugural public offer of SKS Microfinance has received subscription for 18 per cent on the opening day of it’s IPO. Majority of the bids came in from institutional investors.
By the end of first day of the public issue, SKS Microfinance’s IPO was subscribed 34 per cent in the portion reserved for institutional buyers.In the HNI category, the issue had a demand for 5 per cent and in retail portion only for 2 per cent.Most retail investors are expected to put in their bids on the last day.
India’s largest microfinance firm SKS Microfinance expects to raise up to Rs 1,654 crore through the IPO. According to market sources, the offering got an overwhelming response from institutional buyers and it was oversubscribed at least 25 times on the anchor book that closed on Tuesday.
The Initial Public Offering would constitute around 21.6 per cent of the fully diluted post issue paid up capital. The promoters stake would reduce to 37.1 per cent from the current 55.8 per cent post the IPO. SKS Microfinance has so far been able to attract high profile investors such as Vinod Khosla, Narayan Murthy and George Soros.
Citigroup Global Markets, Credit Suisse and Kotak Mahindra are acting as book-running lead-managers for the issue.