SKS Microfinance IPO may hit the Market Soon

Microfinance Focus, June 24. 2010: SKS Microfinance which is going to be India’s first microfinance company to list on the Stock Exchanges may hit the market in the next week, subject to regulatory approvals. It plans to sell 16.79 million shares in its initial public offering (IPO). The firm plans to issue 7.44 million fresh shares while the rest will be sold by existing stakeholders Sequoia Capital, SKS Capital, Mauritius Unitas Corporation (MUC) and Mutual Benefit Trusts.

Citigroup Global Markets India, Kotak Mahindra Capital Company, Credit Suisse Securities (India) Private Limited and Karvy Computershare Private are the book running lead managers for the offering. SKS was started in 1997 as a public society in the form of an NGO, Swayam Krishi Sangam (also known as SKS Societyor SKS NGO) and transformed itself into the largest MFI in India and the fastest growing MFI in the world, as of September 2009 reaching 5.3 million poor women, or some 20% of all MFI clients in India.SKS Society created5 a private company, SKS Microfinance Private Limited in 2003, which became a Non-Banking Financial Company (NBFC) in 2005. Finally, in May 2009, the Company was converted into a public limited company.

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