SKS Microfinance Ltd. IPO
IPO Timeline
Category-wise Subscription
| Category | Sub (x) | Offered | Bid For | Amt (Cr)* |
|---|---|---|---|---|
| QIB | — | 10,074,948 (60%) | — | ₹99,238 Cr |
| NII (HNI) | — | 1,679,157 (10%) | — | ₹16,540 Cr |
| Retail | — | 5,037,474 (30%) | — | ₹49,619 Cr |
| Σ Total | — | 16,791,579 (100%) | — | ₹1,653,971 Cr |
Only available investor categories are shown. Amount is auto-calculated when shares offered and issue price are available.
Issue Details
Minimum Investment (Lot-wise)
| Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 7 | ₹6,895 |
| Retail (Max) | 13 | 91 | ₹89,635 |
| S-HNI (Min) | 14 | 98 | ₹96,530 |
| B-HNI (Min) | 67 | 469 | ₹461,965 |
Financial Statements Amount in ₹ Crore
| Metric | 30-Sep-09 | 31-Mar-09 | 31-Mar-08 |
|---|---|---|---|
| Revenue | 385 | 554 | 170 |
| Profit After Tax | 56 | 80 | 17 |
Valuation & Key Ratios
Grey Market Premium (GMP)
GMP is an unofficial grey market indicator and does not guarantee actual listing price. Invest at your own risk.
Objects of the Issue
- 1 Augment the capital base to meet our future capital requirements arising out of growth in the business. – 684.21
- 2 To achieve the benefits of listing on the Stock Exchanges. –
Company Overview
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.