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SKS files DHRP with Sebi for its IPO

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 12:41 AM IST

Micro-finance company, SKS Microfinance (SKS), today filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities & Exchange Board of India (Sebi) for its approval to enter the capital market through an Initial Public Offering.

The issue comprises 16,791,579 equity shares of Rs 10 each for cash, at a price to be decided through a 100 per cent book building process, consisting of a fresh issue of 7,445,323 equity shares by the company and an offer for sale of 9,346,256 equity shares by certain selling shareholders, a press release issued here stated.

SKS, which will become the first MFI to enter the capital market, would use the net proceeds from the fresh issue to augment the future capital requirements of the company arising out of growth in its business, the release said.

The company proposes to be listed on both the Bombay Stock Exchange and the National Stock Exchange.

The IPO will constitute 21.60 per cent of the fully diluted post-issue capital of the company that provides loans to the rural poor.

The Hyderabad-based company has 24 regional offices and 1,627 branches spread across 19 states in India as at September 2009.

The Book Running Lead Managers (BRLMs) to the issue are Kotak Mahindra Capital, Citigroup Global Markets and Credit Suisse Securities.

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First Published: Mar 26 2010 | 6:53 PM IST

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