SKS Microfinance QIP oversubscribed multiple times

SKS Microfinance has said its Rs 400-crore Qualified Institutional Placement (QIP) was oversubscribed multiple times.

The QIP, which was launched on May 19, closed on Thursday, a company statement said.

Announcing the closure, S Dilli Raj, President, SKS Microfinance Ltd, said the overwhelming response to QIP endorses investors' confidence in SKS Microfinance Ltd's turnaround and improved business prospects for the MFI sector.

"This is a market opening transaction, and we are delighted that the first issuance post the election of the new Central Government is from an inclusive sector like microfinance," Dilli Raj said in the statement.

Credit Suisse acted as Global Co-ordinator and Book Running Lead Manager to the QIP. Kotak Mahindra Capital Company Ltd and Espirito Santo Securities India Private Ltd acted as Book Running Lead Managers, SKS said, adding, YES Bank and Unitus Capital acted as advisers.

"The QIP will enable us to augment our member base from the present 4 million to 8.5 million over the next three years, and meet their credit requirements," SKS Microfinance Ltd's Managing Director and Chief Executive Officer M R Rao said.

SKS Microfinance's net worth of Rs 459 crore as of March 31, 2014, will cross Rs 850 crore (approximate) after the QIP, the statement said.