The board of SKS Microfinance, a newly publicly-listed microfinance institution in India, recently announced its nomination of Mr Vikram Akula to serve as the company’s Executive Chairman. Mr Akula, the founder of SKS Microfinance, currently serves as its Non-executive Chairman. The board expects Mr Akula’s appointment to begin in November 2010. The board also appointed the company’s current Chief Operating Officer, Mr M R Rao, to begin serving his new position as Deputy Chief Executive Officer immediately. SKS Microfinance’s Managing Director and CEO, Mr Suresh Gurumani, will maintain his current positions.
The board also approved “the allotment of 26,000 equity shares to the eligible independent directors under the SKS Microfinance Employee Stock Option Scheme, 2008” [1].
The board of SKS Microfinance made these appointments shortly after the company’s initial public offering (IPO) on July 28, 2010, which established a company valuation of INR 74.7 billion (the equivalent of USD 1.6 billion) [2]. SKS Microfinance’s 71,972,542 shares outstanding, at closing price of INR 1286.70 (USD 27) on September 2, 2010, represent a market capitalization of INR 93 billion (the equivalent of USD 2 billion) [3].
As of March 31, 2010, SKS Microfinance Private Limited reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 897 million, a gross loan portfolio of USD 653 million, a return on assets of 4.96 percent, a return on equity of 21.56 percent and 5.79 million active borrowers.
By Lindsey Shaughnessy, Research Associate
About SKS Microfinance: SKS Microfinance is an Indian microlender that delivers microfinance products through a group lending model to impoverished women in India. It is a for-profit non-banking finance company which converted to a public limited company in May 2009 and launched an initial public offering on July 28, 2010. Equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. As of March 31, 2010, SKS Microfinance Private Limited reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 897 million, a gross loan portfolio of USD 653 million, a return on assets of 4.96 percent, a return on equity of 21.56 percent and 5.79 million active borrowers.
Sources and Additional Resources:
[1] India Microfinance Business News, “SKS Microfinance appoints Vikram Akula as Executive Chairman”, September 12, 2010. http://indiamicrofinance.com/sks-microfinance-appoints-vikram-akula-executive-chairman.html
[2] MICROCAPITAL BRIEF: “SKS Microfinance Launches India’s First Initial Public Offering (IPO) by a Microfinance Institution”, July 29, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-launches-india%E2%80%99s-first-initial-public-offering-ipo-by-a-microfinance-institution/
[3] MICROCAPITAL BRIEF, “India’s SKS Microfinance’s Market Capitalization Reaches $2b Subsequent to Initial Public Offering”, September 15, 2010. https://www.microcapital.org/microcapital-brief-india%E2%80%99s-sks-microfinance%E2%80%99s-market-capitalization-reaches-2b-subsequent-to-initial-public-offering/
MICROCAPITAL BRIEF: “SKS Microfinance IPO Experiences Strong Demand, Total Share Offer 13 Times Oversubscribed”, August 9, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-ipo-experiences-strong-demand-total-share-offer-13-times-oversubscribed/
MICROCAPITAL BRIEF: “India’s SKS Microfinance Raises $64m in Share Allotment Ahead of Initial Public Offering”, July 29, 2010. https://www.microcapital.org/microcapital-brief-india%E2%80%99s-sks-microfinance-raises-64m-in-share-allotment-ahead-of-initial-public-offering-ipo/
MicroCapital’s Microfinance Universe profile: SKS Microfinance
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