SKS Microfinance Lining up for IPO?
Dharamsi, K.

In a first in India, SKS Microfinance, the largest microfinance company, is seeking a listing on Indian stock exchanges. The firm has finalized merchant bankers for its initial public offering. Vishal Mehta, general manager of Lok Capital, an investment firm, says, "If any company lists on the exchange this (SKS) would be the first company."

Investors in the MFI, too, agree that an IPO is on the cards for the firm. "Some of the players in the industry that have achieved reach and scale may need funds for further growth. What better way than an IPO?" said an investor in SKS. But not all investors may exit during the listing. When asked whether Sequoia Capital, which has done rounds of investing in SKS, would look for an exit during the IPO, Rajiv Sabharwal, executive director, Sequoia Capital India Advisors, said, "We are long-term investors in the sector."

But, Suresh Gurumani, chief executive officer and managing director of SKS Microfinance, denied that the firm was looking at an IPO. "If you look at our books we are far away from an IPO. We have also raised a lot of money recently so we do not need capital right now."

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