The initial public offering of India’s largest microlender SKS Microfinance Ltd. starts today and will make some innovators in the sector very rich.
The high-growth, profit-powered model of lending to micro entrepreneurs has already made the company’s founder, Vikram Akula, a multi-millionaire. Earlier this year, he sold part of his stake in the company he launched 12 years ago for more than $10 million.
If the company’s shares sell at the top end of the 850 rupee to 985 rupee price range at which they are being offered, Mr. Akula’s remaining 2.68 million shares will be worth another $50 million. The open offer is scheduled to close on Aug. 2.
To prove they have no plans to take the money and run, Mr. Akula and other SKS executives that hold company shares have pledged not to sell their holdings for the next three years in the 352-page IPO prospectus.
To read the full, original article click on this link: Microlenders Make Millions With SKS IPO - India Real Time - WSJ
Author: Eric Bellman
