SKS Microfinance Limited has fixed the Price Band between Rs. 850 and Rs. 985 per equity share for a public issue of 16,791,579 equity shares of Rs. 10 each (“Equity Shares”) for cash (the “Issue”) consisting of a fresh issue of 7,445,323 equity shares (“Fresh Issue”) and an offer for sale of 9,346,256 equity shares (“Offer for Sale”) by Sequoia Capital India II LLC, SKS Mutual Benefit Trust - Narayankhed, SKS Mutual Benefit Trust - Jogipet, SKS Mutual Benefit Trust - Medak, SKS Mutual Benefit Trust - Sadasivapet, SKS Mutual Benefit Trust - Sangareddy, Kismet Microfinance and Mauritius Unitus Corporation (the “Selling Shareholders”). SKS Microfinance Limited is the largest MFI in India in terms of total value of loans outstanding, number of borrowers (“members”) and number of branches, according to the October 2009 CRISIL report titled India Top 50 Microfinance Institutions.
The Fresh Issue and the Offer for Sale (jointly referred to herein as the “Issue”) will constitute 21.6% of the fully diluted post issue paid-up capital of the Company. The Issue will open on July 28, 2010, and close on July 30, 2010 for QIBs and on August 2, 2010 for applicants in the Retail and Non-Institutional categories. A discount of Rs. 50 per Equity Share is being offered to applicants in the Retail category. Bids can be made for a minimum of 7 Equity Shares and in multiples of 7 Equity Shares thereafter.
This Issue has been graded by CARE as CARE IPO Grade 4 indicating above average fundamentals through its letter dated June 23, 2010.
At least 60% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIB). 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 10% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.
Potential investors may participate in this Issue through an Application Supported by Blocked Amount (“ASBA”) process providing details about the bank account, which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) for the same. All investors other than QIBs can participate through the ASBA process.
The Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the National Stock Exchange of India Limited (“NSE”) and the Bombay Stock Exchange Limited (“BSE”).
The Book Running Lead Managers (“BRLMs”) to the Issue are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited and Credit Suisse Securities (India) Private Limited.