SKS Microfinance, India's largest microfinance entity, has roped in another blue-chip investor as its IPO debut date draws near. The latest to invest in the firm is Quantum (M) Ltd, the billionaire investor George Soros' hedge fund.
Quantum has picked up around 3 lakh shares in the company from existing shareholder Yatish Trading Company Pvt Ltd. Quantum will hold a 0.4% stake post the issue while Mumbai-based securities firm Yatish will have a 2.2% holding.
The other investors in SKS include Sequoia Capital India, Infosys chief mentor N R Narayana Murthy and Vinod Khosla, among others. The shares were acquired by Quantum for a total sum of Rs 19.08 crore, translating into Rs 636 per share. The share price is equal to the price paid by hedge fund Tree Line Asia, which picked up 2.3% stake in SKS through slew of secondary transactions earlier this year.
Various reports have pegged the price band of the issue between Rs 650 and Rs 700 per share. This may put the mopup at anywhere between Rs 1,090 crore and Rs 1,175 crore. The Red Herring Prospectus of Hyderabad-based SKS says the MFI is looking sell around 16.8 million shares. Various reports have also said that the issue may give a discount to retail investors.
SKS IPO opens on July 28 and closes on July 30, 2010 for qualified institutional buyers and on August 2 for others.
Murthy's recently launched $129 million venture capital fund Catamaran invested Rs 28.12 crore in January this year. The investment has been made through Catamaran Management Services Pvt Ltd and the firm will hold a 1.3% stake in SKS post-issue.