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Issue Open Date
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28-Jul-10
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Issue Closing Date
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02-Aug-10
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Application Money
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100
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Allotment Money
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Price Band
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850
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985
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Minimium Application No.
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7
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Issue Size (Shares)
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16791579
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Market Lot
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1
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Objective
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The Issue comprises of a Fresh Issue and an Offer for Sale. We intend to utilise the Net Proceeds for the following objects:(a) augment our capital base to meet our future capital requirements arising out of growth in ourbusiness; and(b) to achieve the benefits of listing on the Stock Exchanges.
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Category
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No. of Shares
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No. of Shares
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Subscription Ratio
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Offered / Reserved |
Bid For |
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Non-Institutional Investors
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1679157
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30658796
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18.2584451602798
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Qualified Institutional Buyers
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7052464
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143720703
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20.3787928587796
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Retail Individual Investors
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7052464
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143720703
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20.3787928587796
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Business Description:
We are the largest MFI in India in terms of total value of loans outstanding, number of borrowers, who wecall members, and number of branches, according to the October 2009 CRISIL report titled India Top 50Microfinance Institutions, or the CRISIL Report. We are a non-banking finance company, or NBFC,registered with and regulated by the Reserve Bank of India, or RBI. We are engaged in providingmicrofinance services to individuals from poor segments of rural India. Our mission is to eradicate poverty.We believe we do that by providing financial services to the poor and by using our channel to providegoods and services that the poor need.Our core business is providing small loans exclusively to poor women predominantly located in rural areasin India. These loans are provided to such members essentially for use in their small businesses or otherincome generating activities and not for personal consumption. These individuals often have no, or verylimited, access to loans from other sources other than private money lenders that we believe typicallycharge very high rates of interest.We utilize a village centered, group lending model to provide unsecured loans to our members. This modelensures credit discipline through mutual support and peer pressure within the group to ensure individualmembers are prudent in conducting their financial affairs and are prompt in repaying their loans. Failure byan individual member to make timely loan payments will prevent other group members from being able toborrow from us in the future; therefore the group will typically make the payment on behalf of a defaultingmember or, in the case of willful default, will use peer pressure to encourage the delinquent member tomake timely payments, effectively providing an informal joint guarantee on the member’s loan. We alsouse our distribution channel to help provide other services and goods that we have found that our membersneed. For instance, we also distribute and administer life insurance policy products for our members andhave pilot programs to provide loans to our members to purchase select consumer products that increasetheir productivity.In addition to our market leadership position and the expertise in microfinance which we have developed,we believe that our competitive strengths include our scalable operating model which leverages technology,diversified product revenues, diversified sources of capital and our pan-India distribution network. Ourstrategy is to further expand our membership, loans and product offerings by relying on these strengths.We continue to finance our expansion by accessing multiple sources of capital, both debt and equity,including listed debentures, priority sector qualifying loans from banks, and equity investments fromventure capital and private equity investors, institutions and others. Additionally, we seek to sell or assignour portfolio loans to banks to improve our financial position and finance our growth.During the three year period from fiscal 2006 to fiscal 2009, we expanded our membership from 201,943 infive states to 3,953,324 in 18 states, and our branches expanded from 80 to 1,353. Our total loansoutstanding increased at a CAGR of 162.9% from Rs. 780.50 million as of March 31, 2006 toRs. 14,175.23 million as of March 31, 2009, and further increased to Rs. 28,011.08 million as ofSeptember 30, 2009. Over the three year period from fiscal 2006 to fiscal 2009, our profit after taxincreased at a CAGR of 265.2%, from Rs. 16.47 million to Rs. 801.96 million. For the six month periodended September 30, 2009, our total income was Rs. 3,846.88 million and our profit after tax was Rs.559.01 million.
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Promoter's Holding
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Total Share Capital
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64527219
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Offered to Public
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16791579
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Promoter's Holding (Pre-Issue)
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55.8
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Promoter's Holding (Post-Issue)
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37.1
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Address |
Ashoka Raghupathi Chambers
D No. 1-10-60 To 62
Opp. To Shoppers Stop
Begumpet
Hyderabad
,
Andhra Pradesh
,
500016
Phone :
+91-40-44526000
Email :
skscomplianceofficer@sksindia.com
Website :
www.sksindia.com
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Registrar |
Karvy Computershare Pvt Ltd
105-108
Arunachal Building
19
Barakhamba Road
New Delhi
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Listed at |
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BSE, NSE
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Lead Manager |
Citigroup Global Markets India Pvt Ltd.
Credit Suisse Securities (India) Pvt Ltd.
Kotak Mahindra Capital Co Ltd
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Promoters |
Mauritius Unitus Corporation
Sequoia Capital India Growth Investments I
Sequoia Capital India II LLC
SKS Capital
SKS Mutual Benefit Trusts
Vikram Akula
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