SKS Microfinance Ltd, India’s largest microfinance company, plans to sell shares in its initial public offering from July 28 to July 30, according to market sources who are involved with the microfinance IPO. The decision was taken after the market regulator Securities and Exchange Board of India(SEBI) okayed the proposal last week, the source added.
SKS Microfinance plans to raise between Rs 1,000 crore to Rs 1,500 crore to meet its rapid expansion plans through the share sale and will be the first-ever IPO by a large micro finance institution in the domestic markets.
Founded by Vikram Akula, SKS Microfinance had total outstanding loans of Rs 3,208 crore as of September, 2009, and a customer-base of around 53 lakh. Venture capital firm Sequoia ( An early investor in Google and Yahoo) is the largest shareholder in the firm and also listed as one of the promoters of SKS Microfinance , other investors include Kismat Capital,SKS Mutual Benefit Trust and Sandstone Capital.
In March 2010, Narayana Murthy’s Catamaran venture fund invested Rs 28 Crore In SKS in a pre-IPO preferential issue at a discounted price of Rs 300 per share.Catamaran Management Services Pvt Ltd will hold a 1.3% stake in SKS post-issue.
SKS Promoters are expected to dilute 21.6 per cent of the shares through the issue.After the IPO issue , the holding of Sequoia Capital in the company will come down to below 16 per cent from the current 24 per cent and that of Kismat Capital will reduce to 12.9 per cent from the current 17.9 per cent.
SKS Microfinance plans to offer a total of 1.6 crore shares to the public, out of which about 50 lakh shares will be allocated to the retail investors category.SKS Microfinance has so far raised almost Rs 13,000 crore of debt on a cumulative basis from various investors to meet its funding requirements.