SKS Microfinance IPO
SKS Microfinance IPO — date, price band, lot size & details 2010
SKS Microfinance listed on 16 Aug 2010 at ₹1,040, 5.6% above the ₹985 issue price.
SKS Microfinance was the largest microfinance institution in India by loans outstanding, borrowers and branches, giving small loans to poor women in rural India. Its total income was Rs 958.93 crore in FY2010.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 15 November.
- Open 28 Jul 2010
- Close 02 Aug 2010
- Allotment 11 Aug 2010
- Refund/credit TBA
- Listing 16 Aug 2010
Issue summary
The terms of the offer, as filed.
| IPO Dates | 28 Jul to 2 Aug, 2010 |
|---|---|
| Price Band | ₹850 – ₹985 |
| Face Value | ₹10 |
| Lot Size | 7 Shares |
| Issue Size | ₹1628.78 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 6,895 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 7 shares at the ₹985 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 7 | ₹6,895 |
| Retail (max) | 29 | 203 | ₹1,99,955 |
| S-HNI (min) | 30 | 210 | ₹2,06,850 |
| S-HNI (max) | 145 | 1,015 | ₹9,99,775 |
| B-HNI (min) | 146 | 1,022 | ₹10,06,670 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Total income rose from Rs 170.01 crore in FY2008 to Rs 958.93 crore in FY2010.
- 02Profit after tax rose from Rs 16.58 crore in FY2008 to Rs 174.84 crore in FY2010.
- 03Net worth rose from Rs 212.18 crore in FY2008 to Rs 950.32 crore in FY2010.
- 04It was the largest MFI in India by loans outstanding, borrowers and branches, according to CRISIL in October 2009; total assets were Rs 4,047.50 crore.
Risks · 5
- 01Total borrowing was Rs 2,694.67 crore in FY2010.
- 02Its loans are small and unsecured, to poor rural borrowers, so collections can suffer in a shock; assets were Rs 4,047.50 crore.
- 03Microfinance is sensitive to state and RBI regulation, and growth from Rs 170.01 crore of income in FY2008 was very fast.
- 04Rs 906.59 crore of the Rs 1,628.78 crore issue went to selling shareholders.
- 05Promoter holding fell from 55.8% before the issue to 37.1% after it.
Three years of numbers
All figures in ₹ crore, as reported in the SKS Microfinance offer document.
| Metric | 31 Mar 2010 | 31 Mar 2009 | 31 Mar 2008 |
|---|---|---|---|
| Assets | 4,047.50 | 3,038.90 | 1,088.75 |
| Total Income | 958.93 | 554.00 | 170.01 |
| Profit After Tax | 174.84 | 79.69 | 16.58 |
| NET Worth | 950.32 | 663.96 | 212.18 |
| Reserves and Surplus | 889.33 | - | - |
| Total Borrowing | 2,694.67 | 2,136.57 | 789.85 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the SKS Microfinance RHP.
Where the money goes
₹748.64 Cr of the issue is earmarked to named objects.
SKS Microfinance IPO Anchor Investors
36 anchor investors across 14 fund houses committed ₹297.74 Cr a day before the issue opened.
Anchor investors bid a day before the issue opens and are locked in after allotment, so a book weighted towards domestic mutual funds is generally read as a stronger signal than one filled by short-horizon funds. Browse every anchor investor scheme or fund house we track.
About the company
According to the October 2009 CRISIL report quoted in its RHP, it was the largest microfinance institution in India by value of loans outstanding, number of borrowers (whom it calls members) and number of branches.
Its core business is giving small loans to poor women, mostly in rural India. Its promoters include Vikram Akula, SKS Mutual Benefit Trusts and Sequoia Capital entities.
The IPO was Rs 1,628.78 crore, with Rs 722.20 crore of fresh issue and Rs 906.59 crore of offer for sale, at Rs 985, the top of the Rs 850 to Rs 985 band. The fresh money was to augment its capital base for growth.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
SKS Microfinance IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Kotak Mahindra Capital Company Limited
204 issues handledBest listing: Premier Energies (+120.0%). Weakest: Puravankara Projects (-22.5%).
Citigroup Global Markets India Pvt. Ltd
74 issues handledBest listing: Tata Technologies (+140.0%). Weakest: Puravankara Projects (-22.5%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of SKS Microfinance?
The current Grey Market Premium is ₹0.
What is the SKS Microfinance IPO price band?
₹850 to ₹985, on a face value of ₹10.
When is the allotment?
The basis of allotment is 11 August 2010, with listing on 16 August 2010.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
