SKS Microfinance, the largest and fastest growing micro-lender in India, raised Rs16.29 billion $342 million in an initial public offering after pricing its shares at the top of an indicated range. The book was 13.7 times subscribed by investors interested in microfinance.
The SKS Microfinance IPO was a test case in more ways than one. In recent years many have come to view the microfinance MFI business as risky, if not suffering from an outright bubble. Near 100% loan growth year after year is unsustainable they say, claiming that the breakneck expansion has come at the cost of prudence and valuations have gone through the roof. Some have criticised the 'for-profit' MFI for betraying...
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