SKS Microfinance which had tapped the capital markets with a fresh issue and offer for sale saw its issue getting oversubscribed 13.69 times. The price band was Rs 850-985 and looking at the huge response from QIB’s the issue would be priced at the top end of the price band at Rs 985. This issue was one which was highly hyped and had its more than fair share of controversies. The oversubscription was similar to Engineers India Limited but for the fact that because of the Anchor investor’s allocation the whole issue size reduced by 18% and effectively the oversubscription became bigger. IF the company had not made an allocation to anchor investors and received the same kind of bids against the 13.69 times oversubscription it would have been 11.22 times.

Details of the subscription are as follows: –

The grey market premium for this share had touched a level of around Rs 85 per share but had fallen last evening to around Rs 40. This is a huge drop and it would be interesting to see how this share fares on listing.