Microfinance News Synopsis: India’s first IPO by microfinance firm to open on July 28

Microfinance Focus, July 14, 2010: Microfinance News Synopsis brings a compilation of industry headlines broadcasted by other news media from across the world.

India’s first IPO by microfinance firm to open on July 28:  SKS Microfinance’s public offer, through which it expects to mop up as much as Rs 1,300 crore, will hit the capital market on July 28. The initial public offering, the first such issue by any microfinance company in the country, will be launched between July 28 and July 30, sources close to the development said today. “The company has received approval from the Securities and Exchange Board of India and, most probably on Monday, it will file the red herring prospectus,” sources said. The Hyderabad-based firm is entering the primary market with 1.69 crore equity shares of Rs 10 each, and expects to raise funds in the range of Rs 1,200 crore to Rs 1,300 crore, they added. The proceeds from the IPO would be used for meeting the company’s future capital requirements [Economic Times]

Microfinance firm eyes cities: Bhartiya Samruddhi Finance (BSFL), the flagship company of Hyderabad-based microfinance firm, Basix Group, is firming up plans to enter into urban micro credit market. The micro finance institution (MFI) is developing a range of micro credit products to meet the needs of urban poor spanning home, health and education sector besides meeting working capital requirements for micro-entrepreneurial activities. The company expects to expand its urban operations to reach nearly 3 million households in five years. BSFL aims to be present in 100 cities by the end of this year, up from existing 29 cities. BSFL will soon launch micro credit products to meet the housing and health needs of urban poor. With the proposed products, BSFL could become the first MFI having a portfolio of urban poor-centric mirco credit products [Financial Chronicle]

Small Businesses Are Missing Out On Microfinance: Thousands of small business entrepreneurs across Sierra Leone – such as petty traders, tailors, hairdressers and farmers – could be missing out on the opportunity to expand their businesses due to a lack of knowledge about microfinance, according to MITAF (Microfinance Investment and Technical Assistance Facility).The results of a survey carried out among traders at Aberdeen Road Market in May 2010 indicate that even in Freetown, many small business owners don’t understand what microfinance is, and are therefore unable to make an educated decision as to whether it will benefit them. Pearson Kalungulungu, MITAF’s Chief of Party, said the results highlight the continuing need to educate business owners [All Africa.com]

© 2010, Microfinance News. All rights reserved. 2008-09