Bookbuilding IPO | ₹1,629 Cr | Listed at BSE, NSE | Wed, Jul 28, 2010 - Mon, Aug 2, 2010
SKS Microfinance IPO is a book build issue of ₹1,628.78 crores. The issue is a combination of fresh issue of 0.74 crore shares aggregating to ₹722.20 crores and offer for sale of 0.93 crore shares aggregating to ₹906.59 crores.
SKS Microfinance IPO bidding started from Jul 28, 2010 and ended on Aug 2, 2010. The shares got listed on BSE, NSE on Aug 16, 2010.
SKS Microfinance IPO price band is set at ₹985 per share. The lot size for an application is 7. The minimum amount of investment required by an retail is ₹6,895 (7 shares) (based on upper price). The lot size investment for sNII is 30 lots (210 shares), amounting to ₹2,06,850, and for bNII, it is 146 lots (1,022 shares), amounting to ₹10,06,670.
Citigroup Global Markets India Pvt.Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue.
Refer to SKS Microfinance IPO RHP for detailed Information.
IPO Open
Wed, Jul 28, 2010
IPO Close
Mon, Aug 2, 2010
Issue Price
₹985 per share
Market Cap (Pre-IPO)
₹7,089.30 Cr
| IPO Date | 28 Jul to 2 Aug, 2010 |
| Listed on | Mon, Aug 16, 2010 |
| Face Value | ₹10 per share |
| Price Band | ₹850 to ₹985 |
| Issue Price | ₹985 per share |
| Lot Size | 7 Shares |
| Sale Type | Fresh capital cum OFS |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Retail Discount | Rs 50.00 per share |
| Total Issue Size | 1,67,91,579 shares (agg. up to ₹1,629 Cr) |
| Fresh Issue | 74,45,323 shares (agg. up to ₹722 Cr) |
| Offer for Sale | 93,46,256 shares of ₹10 (agg. up to ₹907 Cr) |
| Share Holding Pre Issue | 6,45,27,219 shares |
| Share Holding Post Issue | 7,19,72,542 shares |
| BSE Script Code / NSE Symbol | 533228 / SKSMICRO |
| ISIN | INE180K01011 |
SKS Microfinance IPO comprises a total issue size of 1,67,91,579 shares. Out of which, 1,00,74,948 (60.00%) are allocated to QIB, 16,79,157 (10.00%) allocated to NII 50,37,474 (30.00%) allocated to RII.
| Investor Category | Shares Offered | % of Total Issue | Max Allottees |
|---|---|---|---|
| QIB Shares Offered | 1,00,74,948 | 60.00% | NA |
| − Anchor Investor Shares Offered | 30,22,484 | 18.00% | NA |
| − QIB (Ex. Anchor) Shares Offered | 70,52,464 | 42.00% | NA |
| NII (HNI) Shares Offered | 16,79,157 | 10.00% | NA |
| Retail Shares Offered | 50,37,474 | 30.00% | 7,19,639 |
| Total Shares Offered | 1,67,91,579 | 100.00% |
Investors can bid for a minimum of 7 shares and in multiples thereof.
| 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 |
Incorporated in 2003, SKS Microfinance Ltd is the largest MFI in India in terms of total value of loans outstanding, number of borrowers, who they call members, and number of branches, according to the October 2009 CRISIL report titled India Top 50 Microfinance Institutions, or the CRISIL Report. SKS Microfinance is a non-banking finance company, or NBFC, registered with and regulated by the Reserve Bank of India, or RBI. They are engaged in providing microfinance services to individuals from poor segments of rural India.
Company's core business is providing small loans exclusively to poor women predominantly located in rural areas in India. These loans are provided to such members essentially for use in their small businesses or other income generating activities and not for personal consumption. These individuals often have no, or very limited, access to loans from other sources other than private money lenders that they believe typically charge very high rates of interest.
SKS uses the group lending model where poor women guarantee each other’s loans. Borrowers undergo financial literacy training and must pass a test before they are allowed to take out loans. SKS Microfinance is an effective tool that can help reduce poverty and spread economic opportunity by giving poor people access to financial services, such as credit and insurance. SKS distributes small loans that begin at Rs. 2,000 to Rs. 12,000 (about $44-$260) to poor women so they can start and expand simple businesses and increase their incomes. Their micro-enterprises range from raising cows and goats in order to sell their milk, to opening a village tea stall.
| Period Ended |
|---|
| Amount in ₹ Crore |
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
| # | Issue Objects | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Augment the capital base to meet our future capital requirements arising out of growth in the business. | 684.22 |
| KPI | |
|---|---|
| RoNW | 18.4% |
| Pre IPO | Post IPO | |
|---|---|---|
| Promoter Holding | 55.8% | 37.1% |
| Market Cap | ₹7,089.30 Cr. |
The SKS Microfinance IPO is subscribed 13.69 times on August 2, 2010 8:30:00 PM (Day 4). The public issue subscribed 2.81 times in the retail category, 20.38 times in the QIB category, and 18.26 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 20.38 | 70,52,464 | |
| NII | 18.26 | 16,79,157 | |
| Retail | 2.81 | 50,37,474 | |
| Total | 13.69 | 1,37,69,095 |
CARE has assigned an IPO Grade 4 to SKS Microfinance Ltd IPO. This means as per CARE company has 'Above Average Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Click here to download the CARE IPO Grading Document for SKS Microfinance Ltd .
SKS Microfinance Ltd IPO, SKS Microfinance IPO, SKS Microfinance IPO Bidding, SKS Microfinance IPO Allotment Status, SKS Microfinance drhp and SKS Microfinance Ltd IPO listing.
A discount of Rs.50 to the Issue Price of Rs.985 has been offered to Retail Individual Bidders (the 'Retail Discount'). Issue price for Retail Retail Individual Bidders for this share is Rs. 935.
| # | Issue Expenses | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Lead Management, Underwriting and Selling Commission, Brokerage | 4.14 |
| 2 | SCSB Commission | 0.05 |
| 3 | Advertising and marketing expenses | 1.06 |
| 4 | Printing and stationery (including courier, transportation charges) | 0.28 |
| 5 | Others (Registrar fees, legal fees, listing costs etc) | 0.91 |
| 6 | Fees paid to IPO Grading agency | 0.01 |
| Price Details | BSE | NSE |
|---|---|---|
| Final Issue Price | ₹985.00 | ₹985.00 |
| Open | ₹1,036.00 | ₹1,040.00 |
| Low | ₹1,036.00 | ₹1,040.00 |
| High | ₹1,159.90 | ₹1,162.00 |
| Last Trade | ₹1,088.58 | ₹1,088.65 |
Lead Manager Reports
SKS Microfinance IPO is a main-board IPO of 1,67,91,579 equity shares of the face value of ₹10 aggregating up to ₹1,629 Crores. The issue is priced at ₹985 per share. The minimum order quantity is 7.
The IPO opens on Wed, Jul 28, 2010, and closes on Mon, Aug 2, 2010.
Kfin Technologies Ltd. is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
Zerodha customers can apply online in SKS Microfinance IPO using UPI as a payment gateway. Zerodha customers can apply in SKS Microfinance IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in SKS Microfinance IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The SKS Microfinance IPO opens on Wed, Jul 28, 2010 and closes on Mon, Aug 2, 2010.
SKS Microfinance IPO lot size is 7, and the minimum amount required for application is ₹6,895.
You can apply in SKS Microfinance IPO online using either UPI or ASBA as a payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO Application is offered by brokers who don't offer banking services. Read more detail about applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, HDFC Bank, and SBI Bank.
The finalization of Basis of Allotment for SKS Microfinance IPO will be done on [.], and the allotted shares will be credited to your demat account by . Check the SKS Microfinance IPO allotment status.
The SKS Microfinance IPO listing date is on Mon, Aug 16, 2010.
