SKS Microfinance lists at premium of over 5% at BSE

The firm, that lends credit to rural poor especially women, had raised around Rs 1,650 crore through its IPO which was oversubscribed 13.6 times.

"We have got a huge response from the investing community. It (IPO) was oversubscribed 13.6 times on the bourses and this gives us a lot of confidence. This will also allow other such firms to hit the capital market in the near future," SKS Microfinance Chief Financial Officer D Dilli Raj told PTI here today.

On the National Stock Exchange (NSE), the firm debuted at Rs 1,040, up over five per cent over its issue price of Rs 985.

The company had given a 50 per cent discount to the retail investors. While the HNI segment was subscribed 18 times, the QIB was subscribed 20 times and retail 2.8 times.

The proceeds would be used to expand the company's network by adding more branches and acquiring new members as well as increasing its disbursements, Dilli Raj said.

He, however, did not wish to give any forward-looking statement as the company was in a silent period of 40 days.

Asked whether the company is looking at overseas expansion, Dilli Raj said, "that is an opportunity, however, we have no firm plans as yet."

"There is a landmark opportunity of USD 50-billion for the sector in India. It also sends out a key message that we have connected the public sector with the micro finance industry (MFI)," he said.

The firm's disbursements for the last fiscal stood at Rs 7,500-crore and its loan-book has grown at a CAGR of 162 per cent over the last 5-years.

Its PAT has witnessed an annual growth of 233 per cent during the same period.
SKS is based on the lines of Grameen Bank, the micro finance bank of Bangladesh founded by Nobel Laureate and economist Mohammad Yunus, who has been the main force behind the uplift of rural women folk of that country.

The shares of SKS, which has IT bellwether Infosys' founder N R Narayana Murthy on its Board, rose to Rs 1,159 in early morning trading.

The shares were quoted at Rs 1,118.50 a piece at 1238 hrs against the issue price of Rs 985 a share.

"There is a landmark opportunity of USD 50-billion for the sector in India. It also sends out a key message that we have connected the public sector with the micro finance industry (MFI)," Dilli Raj said.

The firm's  disbursements for the last fiscal stood at Rs 7,500-crore and its loan-book has grown at a CAGR of 162 per cent over the last 5-years.

Its PAT has witnessed an annual growth of 233 per cent during the same period.
The Hyderabad-based firm founded by Vikram Akula in 2003, which had fixed its IPO price-band at between Rs 850-985 per share, hit 1,110 per share in the opening hours of trading.

The shares of SKS, which has IT bellwether Infosys' founder N R Narayana Murthy on its Board, rose to Rs 1,159 in early morning trading.

SKS is based on the lines of Grameen Bank, the micro finance bank of Bangladesh founded by Nobel Laureate and economist Mohammad Yunus, who has been the main force behind the uplift of rural women folk of that country.