SKS Microfinance Limited, a microfinance institution (MFI) based in India, is expected to file for an initial public offering (IPO) in the next three to four weeks, according to three sources that news provider, Reuters, does not name.The sources estimate that the deal could raise from USD 200 million to USD 300 million, some of which could come from pre-IPO placements, in which private investors provide some capital before the actual IPO. Citigroup, an US-based financial services company; Kotak Mahindra, an Indian financial organization; and Credit Suisse, a Swiss financial services company, are said to be arrangers of the deal. Vikram Akula, founder of SKS Microfinance, declined to comment on the IPO.
By Christopher Maggio, Research Assistant
About
SKS Microfinance
Description
SKS Microfinance is an microfinance institution (MFI), launched in 1998, that caters to women clients in India. In 2005, it transformed into a for-profit non-banking financial company (NBFC). As of September 2009, SKS had 3.5 million active borrowers and 1,676 branches, compared with 771 branches in March of 2008. According to the MIX Market, the microfinance information clearinghouse, its total assets as of 2008 were USD 596 million, with a return on assets of 3.68 percent and return on equity of 18.72 percent. SKS products include: income generating loans, mid-term loans, individual loans, loan cover insurance and health insurance.
Contact
Address:
Maruti Mansion Municipal No.2-3-578/1, Kachi Colony, Nallagutta, Minister Road
Secunderabad
Andhra Pradesh
500 003
India
Phone: +91 40 4452 6000
Fax: +91 40 4452 6001
Email: info@sksindia.com
About
Kotak Mahindra Bank
Description
Kotak Mahindra Bank is a private bank based in Mumbai, India. It is under the umbrella of the Kotak Mahindra Group, which also offers stock brokerage, mutual funds, life insurance and investment banking. The bank was originally founded in 1985 as Kotak Capital Management Finance Limited, a non-banking financial organization. In 2003, it was converted into a bank. In November of 2009, Kotak Mahindra Bank began involvement in the International Finance Corporation’s Global Trade Finance Program, receiving a trade financing line of up to USD 51 million to on-lend to small and medium-sized enterprises (SMEs).
Kotak Mahindra Bank does not report to the MIX Market, the microfinance information clearinghouse.
Just the Facts
-Country of Incorporation: India
-Year Founded: 1985 (as Kotak Capital Management Finance Limited)
-Legal Status: Private Bank
-Area of Operation: Global
-Participant(s)/Backer(s)/Investor(s): Kotak Mahindra Group
-Products: Deposit Accounts, Loans, Investment Services, Business Banking Solutions, Treasury and Fixed Income Products
Contact Information
+91 22 6600 6022
Additional Resources
Reuters article entitled ‘UPDATE 1-SKS Microfinance to file for IPO in 3-4 weeks’: http://www.reuters.com/article/idUSSGE6270JP20100308
MicroCapital’s Microfinance Universe profile: SKS Microfinance
MicroCapital’s Microfinance Universe profile: Kotak Mahindra Bank
Citigroup: http://www.citigroup.com/
Credit Suisse: http://www.credit-suisse.com/
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