So what is the final take on SKS Microfinance IPO?

QIB is 20 times oversubscribed.

ipo fund the company receive will help improve margin. (less interest cost) Can anyone highlight what SKS loan book will look like in next 3 yrs ?

I'm still worried and confused. Hence have to let go this thing. The main worry IMHO is that i find Indian lenders too lenient these days than before.

Edited by karn - 01/Aug/2010 at 5:42pm

Hi, some useful info
Interview of Mr Akula and Mr Uday Kotak on CNBC
Article on SKS at Moneylife

Some important points to note
-Operating cost is high at 8-10% as Microfinance is effort intensive
-Cost of funds is 8-10%
-Many promoters are seeing this as an exit
-The loans are at an average rate of 20-30%.
So if the poor have a cost of capital of 30%, do their businesses earn return on capital greater than 30% because only then they get richer i.e. return on capital is greater than cost of capital then we get richer.
Something to think about