SKS Microfinance to come with IPO on July 28

Bangalore: SKS Microfinance's initial public offer (IPO) of 16,791,579 equity shares is going to open on July 28, 2010. The issue will close on July 30, 2010 for qualified institutional buyer (QIBs) and on August 2, 2010 for applicants in the retail and non-institutional categories.

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 percent of the fully diluted post issue paid-up capital of the company. This issue has been graded by CARE as CARE IPO Grade 4 indicating above average fundamentals.

SKS Microfinance is the largest MFI in India in terms of total value of loans outstanding, number of borrowers and number of branches, according to the October 2009 CRISIL report titled India Top 50 Microfinance Institutions.

At least 60 percent of the issue shall be allocated on a proportionate basis to QIBs. 5 percent of the QIB Portion (excluding the anchor investor portion) shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10 percent of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30 percent of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the issue price.

The equity shares are proposed to be listed on the National Stock Exchange of India and the Bombay Stock Exchange.

Kotak Mahindra Capital Company, Citigroup Global Markets India and Credit Suisse Securities (India) are the book running lead managers to the Issue.