SKS Microfinance Limited which had launched its IPO between the 28th of July and 2nd of August is to list on Monday the 16th of August. The issue size which included an offer for sale and a fresh issue was 1.68 cr shares. The price band for the IPO was Rs 850-985 and there was a discount to retail category of Rs 50 per share. The issue was subscribed 13.69 times. Retail portion was subscribed 2.81 times. The company had made an allocation of 30% of the issue size to anchor investors. As expected the price band was fixed at Rs 985 the upper end of the price band.

The issue had generated lot of interest during the IPO time. A direct beneficiary of the hype created by SKS Microfinance was another company in the same business SE Investments whose stock price rose post the price band announcement of SKS from Rs 50.55 to Rs 69.35 registering a gain of over 37% in a mere seven trading sessions. The share has since then fallen and closed at Rs 60.25 registering a loss of over 13% in the next seven days.

The performance of the share would be keenly watched because there are a few microfinance players waiting to tap the markets post this issue. We would discuss more of this post the listing on Monday.