SKS Micro IPO subscribed 10.5 times on QIB support

The 168 lakh equity shares IPO of SKS Microfinance has been received overwhelming response from institutions. It has been subscribed 10.51 times, as per NSE's website.

Qualified institutional investors (QIBs) have been quite supportive, as today was last day for subscription for them. QIBs' reserved portion was subscribed 20.38 times.

The issue will remain open till August 02 for non-institutional and retail investors, which portion remained undersubscribed. It has received bids for 14.47 crore equity shares as against issue size of 1.38 crore shares (excluding anchor investors).

The price band for the same is between Rs 850 and Rs 985 per equity share.

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

The issue consists of a fresh issue of 74,45,323 equity shares and an offer for sale of 93,46,256 equity shares 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.

SKS Microfinace has already received commitment for Rs 300 crore (USD 64 million) from anchor investors as against allocation of 30 lakh shares at Rs 985 per share.

The fresh issue and the offer for sale will constitute 21.6% of the fully diluted post issue paid-up capital of the company. A discount of Rs 50 per equity share is being offered to applicants in the retail category. Bids can be made for a minimum of 7 Equity Shares and in multiples of 7 Equity Shares thereafter.

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