SKS Microfinance fixes IPO price band at Rs 850-985 per share

The IPO opens for subscription on 28 July 2010

SKS Microfinance on Monday fixed the price band for its initial public offer (IPO) at Rs 850-985 per share. The issue of 1.68 crore shares by India's largest microfinance company will open for subscription on 28 July 2010 and close on 2 August 2010 for retail and non-institutional investors. For qualified institutional buyers (QIBs), the issue will close on 30 July 2010.



The issue comprises fresh sale of 74.50 lakh shares and an offer for sale of 93.50 lakh shares by the company's existing shareholders. The company has proposed to offer a discount of Rs 50 per share to retail investors on the final issue price.

After the issue, the public shareholding in SKS Microfinance, will be 21.6%. The holding of US venture capital firm Sequoia Capital will come down to 15.1% from the current 22.3%. Renowned investor George Soros' hedge fund Quantum (M) will hold 0.4% stake in the company after the IPO, while N R Narayana Murthy's Catamaran Management Services will own 1.3%.