The initial public offer of SKS Microfinance got oversubscribed 1.27 times on the third day of the issue today, with maximum demand coming from institutional buyers.
The estimated Rs 1,654 crore issue has received demand for 1.75 crore shares against 1.37 crore equities on offer to the public, as per data available with the National Stock Exchange till 1200 hrs.
The IPO closes today for institutional buyers and on August 2 for retail and high net worth investors.
By the end of the second day of the offer on Thursday, the IPO was oversubscribed 1.44 times in the portion reserved for QIBs, as per the latest data with the NSE.
The country's largest microfinance firm has entered the capital markets with an IPO of 1.6 crore shares in the price range of Rs 850 to 985 per share.
The Hyderabad-based microfinance firm expects to raise up to Rs 1,654 crore through the issue and will be using the proceeds to meet its future capital requirements.
Founded by Vikram Akula, SKS Microfinance has a customer base of around 53 lakh. The non-banking firm is backed by several big private equity players, including Sequoia Capital.
Catamaran Management Services, a fund run by Infosys co- founder and chief mentor N R Narayana Murthy, has also made an investment in the firm. It was the first such investment by Catamaran.
The offering will constitute around 21.6 per cent of the fully diluted post-issue paid-up capital of the company. The promoters' stake will come down to 37.1 per cent from 55.8 per cent after the IPO.
Citigroup Global Markets, Credit Suisse and Kotak Mahindra are the book-running lead-managers to the issue.