MICROCAPITAL BRIEF: Quantum Hedge Fund Managed by George Soros Invests in India’s SKS Microfinance, Whose Initial Public Offering (IPO) is Imminent

The Quantum Group of Funds, which consists of several privately owned hedge funds based in the Netherlands and Cayman Islands and managed by George Soros through Soros Fund Management, has purchased 300,000 shares in SKS Microfinance from Yatish Trading Company Pvt Ltd, an Indian securities firm. As a result of this trade, Quantum will hold a 0.4 percent share in SKS Microfinance. The shares were acquired by Quantum for INR 636 (USD 13) per share for a total investment of INR 190.8 million (USD 3.9 million). No financial information is available for the Quantum Group of Funds.

This transaction occurred in advance of SKS Microfinance’s initial public offering (IPO), which is scheduled for July 27, 2010 as was previously reported by MicroCapital on July 22, 2010. SKS Microfinance is an Indian microfinance institution serving impoverished women which has total assets of USD 596 million at March 31, 2009.

The pending IPO, to be offered on the Bombay Stock Exchange and the National Stock Exchange of India, will be the first public offering for an Indian microlender. Citigroup Global Markets, Credit Suisse and Kotak Mahindra, which are United States, Swiss and Indian financial institutions, respectively, are the underwriters for the issue.

By Jennifer Shevock, 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. Equity investors include Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. Its total assets as of March 31, 2009, were USD 596 million with 3.5 million active borrowers, and it reported return on assets of 3.68 percent and return on equity of 18.72 percent.

About Quantum Group of Funds:
The Quantum Group of Funds are privately owned hedge funds based in the Netherlands and Cayman Islands. They are currently advised by George Soros through his company Soros Fund Management. The shareholders of the funds are not publicly disclosed. No financial information is available for the Quantum Group of Funds.

Sources and Additional Resources:
“SKS Microfinance IPO gets George Soros as an Investor” July 23, 2010.
http://indiamicrofinance.com/sks-microfinance-ipo-george-soros-investor.html

MICROCAPITAL BRIEF: “MICROCAPITAL BRIEF: India’s SKS Microfinance Sets Price for Pending IPO, Offers Discount to Retail Investors” July 22, 2010.
https://www.microcapital.org/microcapital-brief-india%E2%80%99s-sks-microfinance-sets-price-for-pending-ipo-offers-discount-to-retail-investors/#more-6053

MICROCAPITAL BRIEF: “Upcoming Initial Public Offering (IPO) of SKS Microfinance Rated as Grade 4/5 By Credit Analysis and Research Limited (CARE Ratings)” July 19, 2010. https://www.microcapital.org/microcapital-brief-upcoming-initial-public-offering-ipo-of-sks-microfinance-rated-as-grade-45-by-credit-analysis-and-research-limited-care-ratings/

MICROCAPITAL BRIEF: “SKS Microfinance, a Microfinance Institution (MFI) in India, Announces Intentions to Sell Shares From July 28 to July 30” July 13, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-a-microfinance-institution-mfi-in-india-announces-intentions-to-sell-shares-from-july-28-to-july-30/

MICROCAPITAL BRIEF: “Indian Microfinance Institution SKS Microfinance Receives Initial Public Offering (IPO) Approval from Securities and Exchange Board of India” July 13, 2010. https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-sks-microfinance-receives-initial-public-offering-ipo-approval-from-securities-and-exchange-board-of-india/

MICROCAPITAL BRIEF: “India’s SKS Microfinance IPO Could Trigger Trend in Microlending” June 16, 2010. https://www.microcapital.org/microcapital-brief-indias-sks-microfinance-ipo-could-trigger-trend-in-microlending/

MICROCAPITAL BRIEF: “Initial Public Offering (IPO) of India-based Microfinance Institution (MFI) SKS Microfinance Raises Questions about Ethics within the Industry” April 13, 2010. https://www.microcapital.org/microcapital-brief-initial-public-offering-ipo-of-india-based-microfinance-institution-mfi-sks-microfinance-raises-questions-about-ethics-within-the-industry/

MICROCAPITAL BRIEF: “SKS Microfinance Limited, Microfinance Institution (MFI) in India, Files to Raise $250m in Initial Public Offering (IPO)” March 29, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-limited-microfinance-institution-mfi-in-india-files-to-raise-250m-in-initial-public-offering-ipo/

MICROCAPITAL BRIEF: “SKS Microfinance, a Microfinance Institution (MFI) Based in India, Expected to File for Initial Public Offering (IPO) in Next Four Weeks” March 9, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-a-microfinance-institution-mfi-based-in-india-expected-to-file-for-initial-public-offering-ipo-in-next-four-weeks/#more-4531

MICROCAPITAL STORY: “SKS Microfinance Plans for India’s First Microfinance Institution’s (MFI) Initial Public Offering (IPO), Managed by Citigroup, Credit Suisse and Kotak Mahindra Capital” October 12, 2009. https://www.microcapital.org/microcapitalorg-story-sks-microfinance-plans-for-india%E2%80%99s-first-microfinance-institution%E2%80%99s-mfi-initial-public-offering-ipo-managed-by-citigroup-credit-suisse-and-kotak-mahindra/#more-3815

MicroCapital Universe: SKS Microfinance: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance

MicroCapital Universe: Quantum Group of Funds: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Quantum+Hedge+Fund

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

Similar Posts: