SKS Microfinance's Rs 1,654-crore public issue, the first public float by any microfinance firm in Asia, has received robust demand from institutional buyers and got subscribed 77 per cent on the second day today.
The issue got total bids for 1.05 crore shares against 1.37 crore equities on offer for the public, as per the latest data available with the National Stock Exchange.
By the end of the second day, the issue saw demand for over 1.44 times in the portion reserved for qualified institutional buyers, the NSE data showed.In the HNI category, the issue got demand for 5 per cent and in retail portion for 7 per cent.
The country's largest microfinance firm has entered the capital markets with an IPO of 1.6 crore shares in the price range of Rs 850 to 985 per share. The IPO closes tomorrow for institutional buyers and on August 2 for retail and HNIs.
The Hyderabad-based microfinance firm expects to raise up to Rs 1,654 crore through the issue and will be using the proceeds to meet its future capital requirements.
The company has already raised Rs 297.71 crore by roping in about 36 funds, including Goldman Sachs, TPG and ICICI Prud, as anchor investors. The firm will allot in total 30.22 lakh shares at Rs 985 a share, the upper end of the price range, to these anchor investors.
Founded by Vikram Akula, SKS Microfinance has a customer base of around 53 lakh. The non-banking firm 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 made an investment in the firm. It was first such investment by Catamaran. The offering will constitute around 21.6 per cent of the fully diluted post-issue paid-up capital. The promoters stake will come down to 37.1 per cent from 55.8 per cent after the IPO.
Citigroup Global Markets, Credit Suisse and Kotak Mahindra are acting as book-running lead-managers to the issue.