Update: SKS Microfinance today announced Rs 850-Rs 985 per share as the price band for its upcoming IPO, which opens on Wednesday — read the Bloomberg report. At the upper price band, it can expect to raise as much as Rs 1.65 crore (about $344 million) says the report. VCCircle reports that Sequoia Capital could make 16 times its money when it sells part of its shares in the company. Sequoia had picked up shares in SKS at Rs 61.18 per share and Rs 137.53 per share over separate transactions, said the report.Sequoia Capital portfolio company SKS Microfinance is scheduled to go public on July 28 with an offering of 16.8 million shares.The public offer includes an issue of 7.44 million shares in fresh equity and an offer for sale of 9.34 million shares by existing investors, including Sequoia Capital. SKS hopes to raise over Rs 1,000 crore, according to various media reports. Founder and chairman Vikram Akula (seen here engaged in a loan collection and disbursal meeting at the Munipalli centre in Sadashivpet, on the outskirts of Hyderabad) kicked off the road show for the IPO in Mumbai on Monday.
Sequoia is currently the largest shareholder in SKS with a 21.8 per cent stake. Post-issue it will hold 14 per cent. It entered the Hyderabad-based microfinance company in 2007 and has invested Rs 125 crore till date. The investments were made from Sequoia Capital India Fund II and Sequoia Capital India Growth Fund I. The firm is betting big on this exit. In fact, it expects SKS alone to return most of the $200 million Sequoia Capital India Fund II corpus — read an Outlook Business story here. The IPO price band is being speculated at Rs 600-700 per share. Incidentally, VCCircle reports that George Soros’ Quantum picked up a 0.4 per cent stake yesterday at Rs 636 per share.
Related Posts
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.