SKS Microfinance Ltd IPO Message Board (Page 52)

291/292 what is real prize? in rv 850/885? other web 850/985 what is righy? please

AKULA SAYS -

"ITS A CONCEPT STOCK, VALN. METRICS OF FINANCIAL STOCK DID NOT APPLY HERE"

"AKULA SAYS ITS NIM AT 5%" THATS SOCKING LOW!!!!!! I WAS CALCULATING IT AROUND 8-10%, AT THAT NIT BUY PSU BANKS.

HE COMPARES SKS WITH GOOGLE AND YAHOO AND NOT WITH PVT BANKS

INVESTOR BETTER BEWARE

Highly overpriced. I'l prefer EIL.

I am surprised that everyone is talking aboubt anchor investor subscription. big names etc. all the ipos which subscribed at upper end in the recent past had big names as anchor investors because only big names can be anchor investors. WE as individuals can not be anchor investors. whats big if HDFC, SBI, ICICI ETC WERE ALSO subscribers to the ipos like indiabulls, rpower, fch etc

Bajaja corp from aug 2, 630 - 660

To
GEM IPO FINDER
thanks for ur reply.
someone useing ur name thats why i was talk about.i know that was not ur post.

291 correction
prize 850 to 885 / not895

chittorgarh wale sahebji
Prize brand is 850 to 895 he please correction in
web site please

27-Jul-10
SKS Microfinance
CM RATING      45/100
SKS Microfinance, promoted by Dr. Vikram Akula, was originally founded as Swayam Krishi Sangam or SKS Society in 1997 and functioned as a non-governmental organization (NGO) that provided microfinance in Andhra Pradesh. SKS Society transferred its business and operations to SKS Microfinance as a newly incorporated private limited company in India in 2003. SKS Microfinance is the largest Microfinance Institution (MFI) in India in terms of total value of loans outstanding, number of borrowers (called members) and number of branches. HDFC SECURITIES

Crisil Equities has assigned a IPO grade of 2/5 to the proposed initial public offer (IPO) of Microsec Financial Services Ltd (MFSL), in their report dated July 26, 2010. According to report, "This grade indicates that the fundamentals of the IPO are below average relative to other listed equity securities in India."

I have got my own down doubts about the credentials of the Hyderabad based company after multi crore Satyam computers fradu. Surprisingly the company not declared any dividend. be wise and not to speak of after fixing share at higher price even without giving any discount to small share holders

@ Saharanpuri , Yes the prog was hosted by Udayan Mukherjee and Uday Kotak has personally recommended the
issue at 985 also considering it to be largest NBFC .
Further I attended the brokers meet at Hyd, the co has tied up its network with Hdfc Bank, SBI for funding Loans to Priority sector Agriculture which is mandatory all under RBI approval .
Just apply for this isssue, already Anchor investors have subsribed heavily big names .
Best issue of this year |

SKS Microfinance has got 36 anchor investors including some of the big names like Soros, Credit Agricole, Reliance AMC, Birla Sunlife AMC, and ICICI Pru Life.
30 lakh shares have been allocated to 36 anchor investors @Rs 985, the upper end of the price band.
Anchor investors demand was seen at US$ 750 million which is at 12 times anchor book size of US$ 63 million. Both foreign and domestic investors participated in the IPO.
Among the foreign anchor investors, Small Cap World Fund and BNP Paribas each received 9.23% of the shares. Among the domestic investors, Reliance AMC received 8.85% and Birla Sun Life got 7.66% of the shares.
Note: SKS has got the ability to do things big, including the pricing!

DID anybody saw program THE APPOINTMENT on CNBC AT 1030 PM tonight FEATURING Vikram Akula & Uday Kotak .

WAS ABLE TO SEE ONLY THE LAST 5 MINUTES THIS GUY VIKRAM AKULA A FULBRIGHT SCHOLAR IS A GREAT COMMUNICATOR NO WONDER ENTIRE WORLD IS EATING OUT OF HIS HANDS.

whats your take on oversubscription figures in all 3 categories n listing price

RELIANCE POWER'S lead manager was kotak
SKS's lead manager is also kotak.

saharanpuri ji
aisa lagata hai ki apne yeh sab copy paste kiya hai, varna itna lamba message hum to nahi likh sakte.

we should not get trapped by grey market premiums and should apply only if company's fundamentals and financials justify the issue rates.

a company after giving loans at 25% per annum has a profit of 80 crores. after this issue this company will get around rs.1300 crores. these 1300 crores will generate addition income of 300 crores as intrest. admin exp will be 60 crores and income tax will be 80 crores. additional net profit will be 160 crores. this means next year nep profit will be only 80+160 = 240 crores.

we will have to think that a company which will earn 250 crores next year is worth rs. 7500 crores or not.

Yes Saharanpuri, If you will go for buying the SKS shares then you won't get less than 75. There is a huge GMP activity going on in this counter. Normally in 1000 + crores IPOs there is huge selling pressure, It seems the old days have come back (prerecession era).

Saharanpuri You seems to have a lot of interest in SKS Microfinance as you have posted a lot of valuable information related to this IPO time to time.
Thanks for your valuable information.

GMP hotting up in SKS.
Mainly buyers at 65, If you want to buy then you won't get at less than 74-75. Operators want to accumulate as many as shares at lowers level as they can before final subscription.
36 world known0 investors have invested $64 million as Anchor Investor.
Its set for a brilliant debut.
Its seems to be a unique story like Educomp.

HDFC SECURITIES CONCLUSION
SKSML is one of the largest players in the Indian micro finance industry having pan India operations with a well-diversified portfolio. It has a track record of the promoters, experienced board of directors and strong management profile. The company has the strong financial position with health margins including good asset quality, comfortable capital adequacy ratio, comfortable liquidity position and
access to diverse sources of institutional funding. It has the strong industry growth in recent period with good prospects for future growth on account of large unmet potential demand. The company is sensitivity to operational risk on account of large volume of cash transaction & decentralized operations spread across the country. Any adverse change in government policies, low seasoning of the industry portfolio and asset quality risks on account of political/religious intervention is some key risks that it faces. However some of these risks are mitigated due to the high diversification of SKSML’s asset portfolio. The salary costs of SKSML are high given its business model. Further dependence on improvement in rural conditions is high as any setback in terms of monsoon failure or floods
etc could jack up the NPA rates. Possibility of some sort of regulation on the interest rates charged going into future is another concern.
The microfinance industry has large portfolio concentration in southern states of India. SKSML’s has good geographical diversification with a large coverage in eastern and western states along with the southern states (55.8% of its loan portfolio as on Mar 31, 2010 comes from AP, West Bengal and Karnataka. Also the vast, rural level loan distribution and collection network of the company provides
an opportunity to diversify into other products by leveraging this network. The core business of the company is microfinance lending. It is planning to leverage the large distribution network to diversify its revenue streams in future. It has strategic alliance with Nokia, Bajaj Allianz, HDFC Ltd, METRO cash & carry, Future Agrovet Ltd and others to provide various offerings, which could increase its revenues
going forward.
Peer Analysis Total Income PAT PATM% BV EPS CMP PE P/BV
FY10 FY09 FY10 FY09 FY10 FY09 Latest FY10
SE Investment * 88.4 48.9 26.3 13.8 29.8 28.2 14.8 1.3 50.6 38.9 3.4
SKS Microfinance 958.9 554.0 174.8 79.7 18.2 14.4 147.3 27.1 850 - 985
At 850 - 31.37
At 985 - 36.35
At 850 - 5.77
At 985 - 6.69
* = Standalone fig
SKSML has issued shares in the past 15 months to private equity investors @ Rs.300 per share. The current issue is priced a bit on the
expensive side (31.4-36.3 times its FY10 EPS and 5.77-6.68 times its BV for FY10). Its smaller peer SE Investments has also risen
200% over the past 4-5 months aided by Bonus and split announcements. On a comparative basis with its peer, SKSML does not
seem too expensive. However compared to Banks and Finance companies, it seems expensive based on P/E, dividend yield and P/BV
basis. On a post issue basis, however the P/BV could come down, mainly due to the premium collected in the issue. Given its size, the
present institutional investors, the recent growth and prospects going forward and the fancy towards the sector, the issue could still give
some listing gains.

SHAREKHAN CONCLUSION ON SKS IPO
SKS’s leadership position in microfinance, scorching growth
rate, high yields and return ratios, enviable asset quality
sets the company apart from traditional financial services
companies. Moreover, SKS would be the only microfinance
company with market cap of around $1.3-1.4 billion (at
upper and lower end of price band) available in the listed
space and is likely to command scarcity premium. The same
is also reflected in the offer price. At the upper and the
lower end of offer price, SKS is valued at 3.85x-4.2x its
post issue book value which is comparable to premium
valuations commanded by leading bank (HDFC Bank trades
at 4.2x its FY10 adjusted book value) and NBFCs (Shriram
Transport Finance trades at 3.5x its FY10 adjusted book
value).