Price Band for SKS Microfinance IPO to be announced 2 days earlier on 26th July 2010.Issue to close on 2nd August 2010
SKS Microfinance’s IPO will open on the 28th of July, 2010 for a public issue of 16,791,579 equity shares of face value Rs. 10. The issue will consist of a fresh issue of 7,445,323 equity shares and an offer for sale of 9,346,256 equity shares held by it’s current promoters which includes venture capital firm Sequoia Capital. Narayana Murthy’s Catamaran venture fund will hold a 1.3% stake in SKS Microfinance post-issue.
As per details given in the prospectus the fresh issue and the offer for sale will constitute 21.6% of the fully diluted post issue paid-up capital of the company. The public issue will close on July 30, 2010 for QIBs and on August 2, 2010 for applicants in the Retail and Non-Institutional categories.The price band, retail discount and the minimum bidding lot is expected to be decided by the company and the shareholders in consultation with the book running managers and advertised at least two working days prior to the opening date of the public issue
At least 60% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIB). 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price.
Further, not less than 10% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.
The Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the NSE and the BSE.
The company is also considering participation by Anchor Investors. Anchor investors belong to the Qualified Institutional Buyers (QIBs) category and include mutual funds, foreign institutional investors, banks, and venture capital funds.These entities are considered to be in a better position than regular investors to judge the fundamentals and prospects of a company.Anchor Investors can be likened to a company’s brand ambassador.
The Book Running Lead Managers for SKS Microfinance’s public issue are Citigroup Global Markets,Kotak Mahindra Capital and Credit Suisse Securities. Credit Suisse has previously successfully managed the public offering of Compartamos, a mexican microfinance company which came out with an IPO in 2007.