The country's largest microfinance company SKS Microfinance, which hopes to raise around Rs 1,300 crore through its forthcoming IPO, plans to double its headcount to 42,000 by the end of the current fiscal as it expands capacity.
"We will expand our branch network from the current 2,000. We have been doubling our headcount for the past two years. Going by previous records we can be hopeful of doubling the headcount in the current fiscal too," SKS Microfinance chief executive and managing director Suresh Gurumani said here today. At the end of the last fiscal, the company had 21,000 employees.
The Hyderabad-based microfinance firm's initial public offering, which opens on July 28, will the first such issue by any microfinance company in the country. The issue, comprising 1.6 crore equity shares of Rs 10 each closes on July 30 for institutional buyers and August 2 for others.
According to street estimate, the company would price its share offer in the range of Rs 650-700 a share. When asked about the likely price band, Gurmani said, "it would be somewhere around the price at which the company founder sold shares in February."
Earlier this year, SKS Microfinance founder-chairman sold his stake in the company to some private equity funds at the rate of Rs 636 a share.
Though, Gurumani did not disclose how much money the company expects to raise funds through the IPO, investment banking sources say the company will be able to raise fund in the range of Rs 1,200 crore to Rs 1,300 crore.
He said a host of anchor investors have shown interest in the IPO and the company is also considering a discount for attracting retail investors.
Citigroup Global Markets, Credit Suisse and Kotak Mahindra are acting as book-running lead-managers to the issue.
"To reach about 50 lakh clients, you need a larger pool of capital. We have been tapping various sources at different levels of our growth...That being the trajectory, IPO is the best way to raise money to grow in the space," SKS founder and chairman Vikram Akula had earlier said.
Venture capital firm Sequoia is the largest shareholder in SKS, while other leading stakeholders include Kismat Capital, Mutual Benefit Trust and Sandstone, amongst others. Post-issue, holding of Sequoia will come down to around 15.1 per cent from the current 22.3 per cent.
SKS mostly gives loans towards trade finance, which constitutes nearly 29 per cent of its portfolio. SKS charges an average interest of 28 per cent per annum and a capital adequacy ratio of 28 per cent. Its total disbursements stand at Rs 14,387 crore so far and a loan outstanding of Rs 4,321 crore.
