Hyderabadi Microfinance Company Gets Great Response for IPO

by HIOC Team
Published: Updated: 160 views

Generally, It is very rare to find a Hyderabad-based company in a industry leading position and more still an innovator in this area.

SKS is a is non banking company, registered with Reserve Bank of India. It is regulated by RBI. SKS provides financial assistance to poor and rural individuals in India who run small businesses or do the income generating activities. It provides financial assistance to poor women in rural India, this is it’s core activity.

SKS microfinance allocated 30 lakh shares for Rs. 300 crore to 36 anchor investors with a rate of Rs. 985 per share. 353 million dollars were raised by SKS microfinance through the initial stock offer. SKS microfinance’ Initial Public Offering received great response from investors and institutions as well. According to NSE’s website, 168 lakh equity shares of SKS were offered to public and subscribed 13.69 times. For the issue of 1.38 crore shares, it received bids for 18.85 crore. It received good support from Qualified institutional investors, and reserved portion subscribed by QIB was 20.38 times. The portion of the non institutional investors subscribed 18.26 times and retail investors 2.81 times. The price band of the equity share which was issued was within Rs 850 to Rs. 985. The retail category applicants had the advantage of Rs 50 discount on an equity share.

We are hoping that this will be an enduring brand and not a short term company like most of the Andhra Pradesh based companies.

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