The public issue of SKS Microfinance, the
first-ever microfinance company in India to tap the capital market, is
opening on July 28, 2010, according to CARE research report dated July
The report says, "The public issue of SKS
Microfinance, the largest MFI in India in terms of total value of loans
outstanding, number of borrowers, or members, and number of branches
(according to the October 2009 CRISIL report titled India Top 50
Microfinance Institutions), has been assigned IPO grade 4/5 indicating
above average fundamentals."
" The grading takes into account track
record of the promoters, experienced board of directors and strong
management profile. The grading also takes into account good corporate
governance practices adopted by the company including presence of
various committees and independence of the board. The grading considers
the strong financial position with healthy margins including good asset
quality, comfortable capital adequacy ratio, comfortable liquidity
position and access to diverse sources of institutional funding. The
grading also considers the strong industry growth in recent period with
good prospects for future growth on account of large unmet potential
demand," according to report.
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