SKS Microfinance Ltd IPO Information:
– Issue Open: Jul 28, 2010 – Aug 02, 2010
– Issue Size: 16,791,579 Equity Shares of Rs. 10
– Issue Size: Rs. 1,427.28 – 1,653.97 Crore
– Face Value: Rs. 10 / Equity Share
– Issue Price: Rs. 850 – Rs. 985 Per Equity Share
– Minimum Quantity: 7 Shares (Rs. 6895 Rs with 1 Lot)
– Maximum Quantity: 7 Shares (Rs. 96530 Rs with 14 Lot)
– Listing At: BSE, NSE
SKS Microfinance Ltd IPO Grading by CARE: IPO Grade 4/5. Means it has Above Average Fundamentals
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.
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. Weekly meetings with borrowers follow a highly disciplined approach. Re-payment rates on our collateral-free loans are more than 99% because of this systematic process. SKS also offers micro-insurance to the poor as well as financing for other goods and services that can help them combat poverty.
SKS Microfinance Ltd IPO:
Objects of the Issue:
The object of the issue are:
1. To meet future capital requirements arising out of growth in business; and
2. To achieve the benefits of listing on the Stock Exchanges.