Money & Banking

SKS Micro looking to raise Rs 3,500 cr ‘growth capital’

Our Bureau Hyderabad | Updated on March 12, 2018 Published on July 06, 2012

SKS Microfinance Ltd is planning to raise Rs 3,500 crore to fund its expansion plans.

The ‘growth capital’ would be mobilised as debt from banks and financial institutions during the course of the year, Mr S. Dilli Raj, Chief Financial Officer, SKS Microfinance, told Business Line here.

In the fourth quarter of last financial year, the Hyderabad-based micro-lender had received an incremental debt funding of Rs 1,360 crore and a capital relief of Rs 135 crore following a securitisation transaction.

“This was 2.3 times larger than the debt fund flow in the first nine months. The first quarter of any fiscal is always a relatively lean period from a microfinance funding perspective, even in best of times. But SKS did raise debt funds in first quarter too,’’ he added.

SKS Microfinance, however, was not in ‘hurry’ to raise capital through Qualified Institutional Placement (QIP).

Last November, the only-listed MFI proposed a Rs 900-crore QIP aimed at funding the demand for credit in non-AP States.

SKS repaid more than Rs 3,800 crore to the banks since the beginning of the AP crisis in October 2010 and did not join corporate debt restructuring programme offered by banks.

When asked about collection of dues in Andhra Pradesh, Mr Raj said there was no improvement in AP collections.

‘Significant’ improvement

On the state of funding for MFIs, he said there was ‘significant’ improvement in the supply-side situation from the fourth quarter of last financial year.

The situation is expected to improve further with investors drawing a clear distinction between the Andhra Pradesh and non-Andhra Pradesh operations of microfinance institutions, he added.

The company’s scrip gained 19 per cent to end at Rs 84.85 on the Bombay Stock Exchange on Friday.

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Published on July 06, 2012
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