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SKS Microfinance Ltd IPO

IPO Detail Basis of Allotment Allotment Status IPO News

Jul 28, 2010 - Aug 02, 2010

Incorporated in 2003, SKS Microfinance Ltd is the largest MFI in India in terms of total value of loans outstanding, number of borrowers, who they call members, and number of branches, according to the October 2009 CRISIL report titled India Top 50 Microfinance Institutions, or the CRISIL Report. SKS Microfinance is a non-banking finance company, or NBFC, registered with and regulated by the Reserve Bank of India, or RBI. They are engaged in providing microfinance services to individuals from poor segments of rural India.

Company's core business is providing small loans exclusively to poor women predominantly located in rural areas in India. These loans are provided to such members essentially for use in their small businesses or other income generating activities and not for personal consumption. These individuals often have no, or very limited, access to loans from other sources other than private money lenders that they believe typically charge very high rates of interest.

SKS uses the group lending model where poor women guarantee each other’s loans. Borrowers undergo financial literacy training and must pass a test before they are allowed to take out loans. SKS Microfinance is an effective tool that can help reduce poverty and spread economic opportunity by giving poor people access to financial services, such as credit and insurance. SKS distributes small loans that begin at Rs. 2,000 to Rs. 12,000 (about $44-$260) to poor women so they can start and expand simple businesses and increase their incomes. Their micro-enterprises range from raising cows and goats in order to sell their milk, to opening a village tea stall.

Company Promoters:

Dr. Vikram Akula, SKS Mutual Benefit Trusts, MUC, SKS Capital, SCI II and Sequoia Capital India Growth Investments are the Promoters of the Company.

Company Financials:

Particulars	For the year/period ended (Rs. in Millions)
	30-Sep-09	31-Mar-09	31-Mar-08	31-Mar-07	31-Mar-06	31-Mar-05
Total Income	3,846.88	5,539.99	1,700.08	456.66	99.44	0.70
Profit After Tax (PAT)	559.01	801.96	166.62	22.06	16.47	0.38

Objects of the Issue:

The object of the issue are:

1. To meet future capital requirements arising out of growth in business; and
2. To achieve the benefits of listing on the Stock Exchanges.

Issue Detail:

  »»  Issue Open: Jul 28, 2010 - Aug 02, 2010
  »»  Issue Type: 100% Book Built Issue IPO
  »»  Issue Size: 16,791,579 Equity Shares of Rs. 10
  »»  Issue Size: Rs. 1,653.97 Crore
  »»  Face Value: Rs. 10 Per Equity Share
  »»  Issue Price: Rs. 850 - Rs. 985 Per Equity Share
  »»  Market Lot: 7 Shares
  »»  Minimum Order Quantity: 7 Shares
  »»  Listing At: BSE, NSE

SKS Microfinance Ltd IPO Grading / Rating

CARE has assigned an IPO Grade 4 to SKS Microfinance Ltd IPO. This means as per CARE company has 'Above Average Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Click here to download the CARE IPO Grading Document for SKS Microfinance Ltd .

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SKS Microfinance IPO Tags:

SKS Microfinance Ltd IPO, SKS Microfinance IPO, SKS Microfinance IPO Bidding, SKS Microfinance IPO Allotment Status, SKS Microfinance drhp and SKS Microfinance Ltd IPO listing.

Retail Discount

A discount of Rs.50 to the Issue Price of Rs.985 has been offered to Retail Individual Bidders (the "Retail Discount"). Issue price for Retail Retail Individual Bidders for this share is Rs. 935.

Bidding Status (IPO subscription detail):

	Number of Times Issue is Subscribed (BSE + NSE)
As on Date & Time	Qualified Institutional Buyers (QIBs)	Non Institutional Investors	Retail Individual Investors (RIIs)	Total
Shares Offered / Reserved	7,052,464	1,679,157	5,037,474	13,769,095
Day 1 - Jul 28, 2010 17:00 IST	0.3400	0.0500	0.0200	0.1800
Day 2 - Jul 29, 2010 17:00 IST	1.4400	0.0500	0.0700	0.7700
Day 3 - Jul 30, 2010 17:00 IST	20.3800	0.1300	0.1600	10.5100
Day 4 - Aug 02, 2010 20:30 IST	20.3800	18.2600	2.8100	13.6900