SKS MFI IPO to start on July 28

Jul 20, 2010 |

Correspondent

Mumbai, July 20: The initial public offering (IPO) of Hyderabad based SKS Microfinance will open on July 28. The IPO is for 1.68 crore shares, which will add up to 21.6 per cent of the post issue equity.

The company has yet to announce a price band for the IPO, but market sources expect the issue size to be around Rs 1,500 crore. The issue price is likely to be announced on July 26, two days before the issue opens for subscription.

The company is also likely to scout for an anchor investor. Of the total issue size, sales by existing shareholders — including Sequoia Capital, will account for about 90 lakh of the shares being sold. Sequoia is the largest investor in the firm, and its stake is expected to drop to 15 per cent after the IPO. Other major stakeholders include Kismat Capital, Mutual Benefit Trust and Sandstone. The offer will close on July 30 for institutional investors and August 2 for retail investors.

At least 60 per cent of the issue will be allocated on a proportionate basis to Qualified Institutional Bidders (QIBs).

SKS is the largest microfinance firm in India with total disbursements of over Rs 14,000 crore. This would also be the first public offering by a microfinance institution in the country. Kotak Mahindra, Citigroup Global markets and Credit Suisse are the book running lead managers.

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