India's leading microfinance firm, SKS Microfinance, made a decent debut on the Bombay Stock Exchange at Rs 1.036, up 5.17 per cent over its issue price.
The firm, that lends credit to rural poor especially women, has raised around Rs 1,650-crore (Rs 16.5 billion) through its IPO which was oversubscribed 13.6-times.
"We have got a huge response from the investing community. It (IPO) was oversubscribed 13.6 times on the bourses and this gives us a lot of confidence. This will also allow other such firms to hit the capital market in the near future," SKS' Chief Financial Officer, D Dilli Raj said.
On the National Stock Exchange, the firm debuted at Rs 1,040, up over five per cent over its issue price of Rs 985.
The company had given a 50 per cent discount to the retail investors. While the HNI segment was subscribed 18 times, the QIB was subscribed 20 times and retail 2.8 times.
The proceeds would be used to expand the company's network by adding more branches and acquiring new members as well as increasing its disbursements, Dilli Raj said.
He, however, did not wish to give any forward-looking statement as the company was in a silent period of 40 days.
Asked whether the company is looking at overseas expansion, Dilli Raj said," that is an opportunity, however, we have no firm plans as yet."
