Microfinance News Synopsis: SKS may fix IPO price band at Rs 600-Rs 700

Microfinance Focus, July 20, 2010: Microfinance News Synopsis brings a compilation of industry headlines broadcasted by other news media from across the world.

SKS may fix IPO price band at Rs 600-Rs 700: SKS Microfinance is looking to raise around Rs 1,500 crore through its proposed initial public offering. With a price band of Rs 650-700 a share, the first microfinance company to go public will offer around 5-10 per cent discount to the retail investors, senior investment bankers told Financial Chronicle. The company is selling 1.68 crore equity shares in the IPO. This includes fresh issue of 74.45 lakh shares and 93.46 lakh shares on offer for sale by existing shareholders, including Sequoi Capital. “The company made a private equity offering to Tree Line of Singapore at Rs 636 a share few months back. The IPO pricing will be more than that,” a senior banker said. According to him, the results for the fourth quarter of previous financial year and the first quarter of this year have been excellent and, hence, the company is hoping to get higher [Financial Chronicle]

IDBI Bank launches Urban Financial Inclusion program: IDBI Bank has already launched the Financial Inclusion drive, ‘Aarthik Vikas Kee Ore’ in unbanked villages of Maharashtra. As a step towards including the urban poor into the folds of banking, R.M. Malla, Chairman and Managing Director of IDBI Bank Ltd., launched the Urban Financial Inclusion program at Ambedkar Nagar, Cuffe Parade, Mumbai on Saturday July 17, 2010. Under this program, basic banking services would be provided at the doorsteps of the customers with the help of biometric smart cards and hand-held devices through Business Correspondents of the Bank. IDBI Bank has already launched the Financial Inclusion drive, ‘Aarthik Vikas Kee Ore’ in unbanked villages of Maharashtra [India Infoline]

SKS Microfinance weighing discount to retail investors: The initial public offering of SKS Microfinance will open for subscription on July 28. The company will offer 1.67 crore shares (21.6 per cent of fully diluted post issue capital) through the IPO, of which, 93.46 lakh shares is an offer for sale by Sequoia Capital India, SKS Mutual Benefit Trust, Kismet Microfinance and Mauritius Unitus Corporation. Mr Vikram Akula, Founder and Chairman of SKS Microfinance, said the company is considering giving retail investors a discount to the issue price that will be announced on Monday. The price band for the issue will be announced on July 26. The issue will be open to anchor investors on July 27. The issue will close for Qualified Institutional Buyers on July 30 and for retail and high networth individuals on August 2 [Hindu Business Line]

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