by Conner Brannen -

MICROCAPITAL BRIEF: SKS Microfinance, a Microfinance Institution (MFI) in India, Announces Intentions to Sell Shares From July 28 to July 30

SKS Microfinance, a microfinance institution (MFI) that caters to women in India, plans to sell shares as part of a USD 250 million initial public offering (IPO) from July 28 to July 30. The price range at which the shares will be sold will be announced on July 26. The sale will be managed by Citigroup, a financial services firm based in New York City, USA; Credit Suisse, a financial services firm based in Zurich, Switzerland; and Kotak Mahindra, a financial services group in Mumbai, India [1].

by Jennifer Shevock -

MICROCAPITAL BRIEF: Vikram Akula, Founder of Indian Microfinance Institution SKS Microfinance, Speaks Out in Advance of This Month’s Initial Public Offering (IPO)

Vikram Akula, founder and chairperson of SKS Microfinance, an Indian microfinance institution (MFI), recently provided thoughts about the microlending industry in India pending SKS Microfinance’s upcoming initial public offering (IPO) amid criticism regarding SKS Microfinance’s interest rates and the debate over whether MFIs should operate on a nonprofit or for-profit basis.

by Jennifer Shevock -

MICROCAPITAL BRIEF: Indian Microfinance Institution SKS Microfinance Receives Initial Public Offering (IPO) Approval from Securities and Exchange Board of India

SKS Microfinance, an Indian microfinance institution, recently received approval from the Securities and Exchange Board of India for its planned initial public offering (IPO).

by Conner Brannen -

MICROCAPITAL BRIEF: Nokia Launches Microfinance Scheme to Sell Mobile Phones to Poor People in Rural India

Nokia, a Finnish telecommunications company, is partnering with microfinance institutions (MFIs) to allow rural residents in the Indian states of Punjab and Haryana to use microloans to buy mobile phones. The company has already formed partnerships with several microfinance MFIs in the area, including SKS Microfinance, which is based in Hyderabad; Ujjivan, which maintains offices in Bangalore, Delhi, Kolkata and Pune; and Madura Microfinance, headquartered in Adyar. The payment scheme for the use each mobile phone will be as low as INR 100 (USD 2.14) per week.

by Jennifer Shevock -

MICROCAPITAL BRIEF: Microloan Default Risk Rises in India as SKS Microfinance Plans Initial Public Offering (IPO)

A trend in initial public offerings (IPOs) by microfinance institutions in India could potentially increase the risk of defaults by microborrowers. SKS Microfinance, an Indian microfinance institution, has recently filed to raise up to USD 250 million in an initial public offering (IPO), as initially reported by MicroCapital on March 9, 2010. This pending IPO is causing concern that an IPO trend in India could trigger a trend in microfinance institutions’ (MFIs’) funding sources, as reported by MicroCapital on June 16, 2010, which could raise the risk of loan defaults by pressuring MFIs to disburse riskier microloans.

by Jennifer Shevock -

MICROCAPITAL BRIEF: India’s SKS Microfinance IPO Could Trigger Trend in Microlending

SKS Microfinance has recently filed to raise up to USD 250 million in an initial public offering (IPO), as initially reported by MicroCapital on March 9, 2010. The pending IPO, to be offered on the Bombay Stock Exchange and the National Stock Exchange of India, would be the first public offering for an Indian microlender and is resulting in debate about the future of funding microfinance institutions.

by Matthew Castner -

MICROCAPITAL BRIEF: Elevar and SVB make USD 8.6m Equity Investment In Indian Microfinance Institution Vistaar Livelihood Finance

Elevar Equity Advisors and SVB India Capital Partners have teamed to make an INR 400 million (USD 8.64 million) equity investment in Vistaar Livelihood Finance, an Indian microfinance institution catering to non-agricultural female entrepreneurs. While their stake in Vistaar was not disclosed, Brahmanand Hegde, CEO of Vistaar, stated that the two companies had bought a “substantial minority” in the company.

by Julia Korn -

MICROCAPITAL BRIEF: Freedom from Hunger Research Team in Davis, California, Attempts to Reconcile Opposing Arguments Regarding the Effect of Microfinance

The Freedom from Hunger Research Team in Davis, California has released an opinion piece in an effort to mediate the two sides of an argument regarding the influence of microfinance.

by Julia Korn -

MICROCAPITAL BRIEF: Six Microfinance Organizations Release Document Citing the Advantages of Microfinance as Response to “The Miracle of Microfinance? Evidence From a Randomized Evaluation” by Abhijit Banerjee, Esther Duflo, Rachel Glennerster, and Cynthia Kinnan

As a response to skepticism of the success of microfinance in a study done by economists Abhijit Banerjee, Esther Duflo, Rachel Glennerster, and Cynthia Kinnan, six organizations released an open letter citing the advantages of microfinance.

by Christopher Maggio -

MICROCAPITAL BRIEF: SKS Microfinance Limited, Microfinance Institution (MFI) in India, Files to Raise $250m in Initial Public Offering (IPO)

There are now more details available regarding the much-anticipated initial public offering (IPO) of SKS Microfinance Limited, a microfinance institution (MFI) based in India, which MicroCapital covered most recently on March 9, 2010.

by Christine Chang -

MICROCAPITAL BRIEF: Elevar Equity, a Bangalore-based Private Equity Fund, Raises $70m for Microfinance-focused Fund for Investments in India, Mexico, the Philippines and Peru

Elevar Equity Advisors Private Limited (Elevar), a Bangalore-based private equity fund, has raised a USD 70 million fund that will invest in microfinance and other services in India, Mexico, the Philippines and Peru.

by Christopher Maggio -

MICROCAPITAL BRIEF: Hattha Kaksekar Limited (HKL) and Angkor Mikroheranhvatho Kampuchea (AMK), Two Microfinance Institutions (MFIs) Located in Cambodia, Receive Deposit-Taking Licenses

Hattha Kaksekar Limited (HKL) and Angkor Mikroheranhvatho Kampuchea (AMK), two microfinance institutions (MFIs) located in Cambodia, have received a deposit-taking license from the National Bank of Cambodia, the central bank of Cambodia.

by Jay Kumar -

MICROCAPITAL BRIEF: Catamaran Venture Capital Fund to Invest in SKS Microfinance Ltd, an Indian Microfinance Institution Expected to Soon Launch an Initial Public Offering (IPO)

N R Narayana Murthy, founder and former CEO of Infosys, a global consulting and information technology services company based in India, will reportedly invest in SKS Microfinance Ltd, an Indian microfinance institution (MFI) expected to soon float an initial public offering (IPO).

by the MicroCapital Team -

MICROCAPITAL BRIEF: Indian Microfinance Institution Grameen Koota Raises $4.2m from MicroVest Purchase of Non-convertible Debentures (NCDs)

Grameen Financial Services Private Limited, an Indian microfinance institution also known as Grameen Koota, has raised INR 20 crore (USD 4.27 million) from a sale of secured, redeemable, non-convertible debentures (NCDs) to MicroVest I LP, a US-based private equity fund.