SKS Microfinance plans to raise $353m through IPO

Microfinance Focus, July 26, 2010: India’s largest microfinance institution SKS aims to raise around 16.54 billion rupees ($353 million) by way of initial public offering (IPO) of its shares as reported by Reuters. The company has fixed the price band for the offering at 850-985 rupees per share and retail investor will get 50 rupees discount on the final price, the report says. The IPO is being launched on Wednesday and closes on Aug. 2.

Kotak Mahindra Capital Co., Citigroup Inc. and Credit Suisse Group AG are managing the IPO. A 21.6 percent stake in the lender will be offered to investors, with 7.45 million new shares to be sold by the company and 9.35 million shares by existing investors. At least 5.03 million shares will be made available to retail bidders. The IPO offer ends on Aug. 2, with institutional investors allowed to bid until July 30.

George Soros’ hedge fund, Quantum has recently picked up around 3 lakh shares in the company for a total sum of Rs 19.08 crore, (Rs 636 per share). Quantum has picked up the shares from existing shareholder Yatish Trading Company Pvt Ltd. It will hold a 0.4% stake post the issue while Mumbai-based securities firm Yatish will have a 2.2% holding.

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