SKS Microfinance, the only listed micro-lender in the country, has received express of interest (EoI) from a couple of existing investors for its proposed Rs 900 share sale to institutional investors. The company, which has started the qualified institutional process (QIP), hopes to have all approvals in place by December first week.
Couple of existing investor’s has evinced interest in the proposed QIP in view of the fact that the company is seeking growth capital to fund opportunities stemming from the unprecedented consolidation in the microfinance sector. The company aims to raise the money to cash in on the demand-supply gap in non-Andhra Pradesh markets. However, the company is exploring opportunities to raise funds not only from existing investors but also from global microfinance investment vehicles, private equity players, socially relevant investors and public market participants.
In a recent development, beleaguered Indian microfinance firm is likely to write off its entire outstanding loan portfolio of Rs 822 crore in Andhra Pradesh, its biggest market. The company plans to write off Rs 678 crore of loans. The company has written off the outstanding loans in AP and brought them down from Rs 1,500 crore to Rs 822 crore. In addition, there is a cushioning of deferred tax of Rs 220 crore, and if that is factored in the total outstanding comes down further. Further the company is also pinning its hopes on non-AP markets, where it sees a fresh demand of at least Rs 10,000 crore.
SKS Microfinance is a non-banking finance company (NBFC), registered and regulated by Reserve Bank of India, whose mission is to eradicate poverty by providing financial services to the poor.
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