SKS Microfinance’s IPO was oversubscribed yesterday mainly with support from QIB’s who have oversubscribed the portion reserved for them by 20 Times
Friday which was the last day for Qualified institutional investors (QIBs) to put in their bids saw a huge surge in participation with many bids coming in at the higher end of the price band.
The issue will remain open till August 2nd for non institutional and retail investors. SKS Microfinance’s IPO has so far received bids for 14.47 crore equity shares as against an issue size of 1.38 crore shares (excluding anchor investors). A discount of Rs 50 per equity share is being offered to applicants in the retail category. With a market lot of 7 Equity Shares, bids can be made in multiples of 7 Equity Shares.
The IPO is the first by a microfinance company in India and shows that investors have an appetite for such lending institutions that are doing business at the bottom of the pyramid.The money raised from the fresh issue of shares which will be approximately Rs 630-730 crore, will be used for meeting SKS Microfinance’s future capital requirements.
SKS Microfinance which makes small loans to the poor, has drawn high profile investors which include George Soros, Sequoia, Kismet Capital, Unitus, Vinod Khosla and Infosys Technologies founder N.R. Narayana Murthy.
Citigroup, Kotak Mahindra Capital and Credit Suisse are the lead arrangers for SKS Microfinance’s Initial Public Offering.