SKS Microfinance announces IPO
India’s first microfinance institution (MFI) to issue public shares has announced its initial public offering (IPO) will open on 28 July.
SKS Microfinance will announce the issue price on 26 July and is considering offering a discount to retail investors.
The company plans raise Rs. 1,500cr ($320 million) from the IPO with the shares sold making up 21.6% of the company’s capital.
Critics have slammed SKS for announcing an IPO, saying the company will be forced to maximise profit by exploiting India’s poorest citizens.
However, SKS said an IPO is the best way for the company to achieve quick growth.
“IPO is the best way to raise money to grow in the space,” said Vikram Akula, SKS founder and chairman.
The issue will close on 30 July for institutional investors and 2 August for retail investors.