The below article is brought to you in partnership with Microfinance Insights and Microfinance Gateway
Insights: How do you think the microfinance sector and the investor community at large will react to the IPO?
Ramakrishnan: SKS has a unique advantage. It has the first mover advantage. Obviously, whatever it does could possibly become trends and benchmarks for others to follow. In terms of reaction from people, there are certain pundits who say that the valuation is quite high. I personally feel that the model is strong enough for scalability for long-term benefits.
Insights: Do you think the frequency of MFI IPO’s will pick up?
Ramakrishnan: Yes, it opens a new avenue for microfinance companies, but at the same time I don’t think there’s going to be a deluge of public offerings. At best, I could visualize the next four or five large-scale microfinance institutions issue offerings. That could take anywhere from eight to 16 months.
Read the rest of the interview on the Microfinance Insights Website