SKS Microfinance to enter the primary market on July 28, 2010

SKS Microfinance’s initial public offering (IPO) of 16,791,579 equity shares will open on July 28, 2010 to raise between Rs 1000-Rs 1500 crore. The issue consists of a fresh issue of 7,445,323 equity shares and an offer for sale of 9,346,256 equity shares. The fresh issue and the offer for sale will constitute 21.6% of the fully diluted post issue paid-up capital of the company. The issue will close on July 30, 2010 for QIBs and on August 2, 2010 for applicants in the retail and non-institutional categories.

The offer for sale is made by Sequoia Capital India II LLC, SKS Mutual Benefit Trust – Narayankhed, SKS Mutual Benefit Trust – Jogipet, SKS Mutual Benefit Trust – Medak, SKS Mutual Benefit Trust – Sadasivapet, SKS Mutual Benefit Trust – Sangareddy, Kismet Microfinance and Mauritius Unitus Corporation.

This issue has been graded by CARE as CARE IPO Grade 4 indicating above average fundamentals. The book running lead managers to the issue are Kotak Mahindra Capital company, Citigroup Global markets and Credit Suisse, while karvy computer share is the registrar.

The proceeds from the IPO would be used for meeting the company’s future capital requirements as the company needs a larger pool of capital to reach out to over 50 lakh clients, especially in the remote areas of all states

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Tags: IPO Updates, SKS Microfinance

Category: IPO