SKS Microfinance Pvt Ltd, one of the well-known micro finance companies in the country with its presence in 13 states, plans to raise equity from some strategic investors. It is in talks with some players but has not frozen any deal as yet.
Speaking to FE, M R Rao, chief operating officer of the company said, ?we are planning to raise about Rs 120 crore through equity and Rs 1,500 crore as debt during the current year?.
The existing investors have agreed to make further investment in the company in the form of equity besides we are also talking to some strategic investors to raise funds. But the deals have not been finalised. ?We will raise equity within the next two months?.
Private equity players have lot of interest in the micro finance industry (MFI) space and more so in SKS as the company is growing rapidly, he added. Right now the equity capital of the company stands at Rs 73 crore. On the debt side, the company had originally planned to raise Rs 1,500 crore during the current financial year. Of that, already 50% has been raised and the balance would be raised before March 2008.
?As a non-banking finance company we have to maintain a capital adequacy ratio of 10% and that means we can borrow about 10 times the capital we have?.