SKS Microfinance’s public issue will close today for QIBs and on August 2, 2010 for applicants in the Retail and Non-Institutional categories.
SKS Microfinance IPO of Rs 1,654-crore($354m) has got subscribed for 77 per cent on the second day.The issue had got total bids for 1.05 crore shares against 1.37 crore equities on offer as per the data available with the National Stock Exchange.
By the end of the second day, SKS Microfinance’s IPO had a demand for over 1.44 times in the portion reserved for qualified institutional buyers(QIB’s). In the HNI category, the issue had so far got a demand of just 5 per cent and the retail portion had a demand for 7 per cent.
The company has already raised over Rs 297.71 crore by roping in about 36 Anchor Investors that include GoldmanSachs,Quantum Fund, TPG and ICICI Prudential.SKS Microfinance will allot a total of 30.22 lakh shares at Rs 985 a share which is the upper end of the price band to these anchor investors.
With still two days left for Retail Investors and HNI’s, market analysts feel the issue should be oversubscribed by Monday.
Banco Compartamos IPO Comparison
In April 2007, Mexico’s largest microfinance institution, Banco Compartamos had made an initial public offering (IPO) of its stock. The Banco Compartamos IPO was oversubscribed 13 times, and the share price had surged 22 percent in the first day of trading , even though the offering price was twelve times the book value of the company.
The original investors received about US$450 million for selling 30 percent of their shares, representing a rate of return on their original investment (about US$6 million) of 100 percent a year compounded over the eight year investment period.