SKS Microfinance fixes IPO issue price at Rs 985 per share | business | Hindustan Times
Today in New Delhi, India
Jan 18, 2017-Wednesday
New Delhi
  • Humidity
  • Wind

SKS Microfinance fixes IPO issue price at Rs 985 per share

business Updated: Aug 03, 2010 17:29 IST

Highlight Story

SKS Microfinance, the country's largest microfinance firm, today set the issue price of its initial public offer at Rs 985 a share - the upper band of the price range.

"The issue price has been fixed at Rs 985 per share. We will offer a discount of Rs 50 per share to retail investors," a top official of the company told PTI.

According to the official, listing of SKS shares will happen on August 16.

The Rs 1,654-crore public offering generated robust demand, especially among retail buyers, and was oversubscribed by 13.69 times.

The IPO closed on Monday. For institutional buyers, it had closed on July 30.

Aiming to raise Rs 1,654 crore, the Hyderabad-based firm had entered the capital markets with an IPO of 1.6 crore shares in the price range of Rs 850 to 985 a share.

In the portion reserved for QIBs, the IPO was subscribed 20.38 times, as per data with National Stock Exchange. In the HNI category, it was subscribed 18.26 times, while the retail portion saw a response of 2.81 times.

The offer, which opened on July 28, attracted investments from many big fund houses. According to banking sources, the IPO received bids from Reliance Capital, ICICI Pru and some big FIIs, including Goldman Sachs.

The country's largest microfinance firm will use proceeds from the IPO to meet its future capital needs. Founded by Vikram Akula, a US national, SKS is backed by several big private equity players, including Sequoia Capital.

Catamaran Management Services, a fund run by Infosys co-founder and chief mentor NR Narayana Murthy, has also invested in the firm. It was the first such investment by Catamaran.