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SKS Microfinance To Tap Capital Market Next Month

6/4/2010 4:58 AM ET

SKS Microfinance, Vikram Akula-promoted largest micro-finance company, is likely tap the capital market next month to raise Rs.1,000 crore to Rs.1,200 crore to meet its expansion plans, report media.

The company has filed Draft Red Herring Prospectus and is awaiting the market regulator's nod for the initial public offer.

Akula reportedly said that the company required a larger pool of capital to reach about five million clients and added that IPO was the best way to raise money.

This is for the first time that a micro-finance company is hitting the capital market and the company plans to offer 1.6 crore shares to public of which about 50-lakh shares will be allocated to retail investors. The promoters will dilute 21.6 per cent of shares through the issue.

Venture capital firm Sequoia is the largest shareholder in the firm while other major stakeholders include Kismat Capital, Mutual Benefit Trust and Sandstone, among others. Post-issue, the holding of Sequoia Capital in the company will come down to around 16 per cent from the current 24 per cent and that of Kismat Capital to 12.9 per cent from 17.9 per cent, the report said.

by RTT Staff Writer

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