Mumbai, Jul 20 : Ushering in a new dimension to the growing Micro financing concept in the country, a pioneer in the sector SKS Microfinance today announced its entry into the capital market with an offer size of 16.79 million shares with the Initial Public Offer opening on July 28.
 
Taking a lead among the Micro Finance Companies to tap public investment to shore up their business, SKS Microfinance aimed to utilise the offer proceeds to augment its capital base besides achiving the benefits of listing on the stock exchanges.

The Price band for the 100 per cent book building route issue would be announced on July 26.

SKS Microfinance Promotor and Chairman Dr Vikram Akula told newsmen here that with only 15 per cent of the potential tapped, Micro Finance business in India had an ample opportunity to grow and change the life of the poor both in rural and urban areas.

As of March 31, 2010, the company wass operating in 19 states with the total portfolio loans outstanding increasing at 147.7 per cent compounded annual growth rate fromm Rs.78.05 crore in 2005-06 top Rs 2936.72 crore in March 31, 2010. Last fiscal it reported a total income of Rs 958.92 crore.

The fresh issue and the offer for sale would constitute 21.6 per cent of the fully diluted post issue paid up capital. The issue would close on August 2 for retailers and non instituional categories and on July 30 for Qualified Institutional buyers. The company is considering a discount for retail investors.

Besides a fresh issue of 7.44 million shares, the offer also included sale of 9.34 million shares by sequoia capital inida, SKS mutual benefit trusts in narayankhed, S Jogipet, Medak, Sadasivpet and Sangareddy besides Mismet Microfinance and Mauritius Unitus Corporation.

SKS Micro Finance was the largest mFI in India in terms of total value of loans oustanding, number of borrowers and number of branches.
--UNI