The nation’s largest microfinance company SKS Microfinance fixed the price band of its IPO at Rs 850-985 per share. The Hyderabad-based microfinance firm expects to raise up to Rs 1,654 crore through the initial public offering, which opens on July 28.At the upper end of the price range, the issue is valued at Rs 1,654 crore, while at the lower it would be able to fetch about Rs 1,427 crore. SKS is coming out in the capital market with a total issue size of 1.6 crore equity shares of Rs 10 each. The IPO closes on July 30 for institutional buyers and August 2 for retail and High Networth Individuals.SKS Microfinance’s public issue will the first such offer by any microfinance company in the country.The proceeds from the IPO would be used for meeting the company’s future capital requirements. Founded by Vikram Akula, SKS Microfinance has a customer base of around 53 lakh. The non-banking firm is backed by several big private equity players, including Sequoia Capital-India.
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Micro-Finance to Face Slow Painful Death. SKS Share to enter Free Fall. Sell, Sell, Sell!
SKS, the Indian micro-finance giant’s IPO was supposed to signal the coming of age of the micro-finance (MF). Instead, it contained the seed for the destruction of the entire industry. Their Rs 10 share on listing attracted a premium of Rs 975 and such was the investor confidence, it touched a high of Rs 1,490 in a matter of days. Then hell broke loose with the industry hit by charges of them profiteering and causing farmer suicides. Its reverberations were so strong that it had been felt by the industry all over the world. The stock plunged to Rs 890 before recovering to be a tad over its listing price and hovering around this range for the last one week. We expose the dark underbelly of a Frankenstein unleashed by NGOs.
Read more: http://devconsultgroup.blogspot.com/2010/11/micro-finance-to-face-slow-painful.html
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