SKS microfinance seems to be the IPO of decade to be carefully evaluated & applied.

George Soros has just picked  A 3 % STAKE IN IT  @ 637 other holders are NR Narayan murthy,Sandstone,Kismet capital,SIDBI,Seqoia capital

Initially in the few years till 2006 the company has issued shares at Rs. 10/- as the society was transformed to the company in 2005-06. Later on still the base was small it started investing in its growth and in a year i.e., 2006-07 it has reached Rs.50/- (approx), a multiple of 5x in an years time. and later in the year 2008-2009 it moved on to Rs. 300/-, a multiple of 6x over a period of two years. No one questioned the math here and there were large PE funds investing at this point of time, who has done huge amount of analysis and privy to important calculations. From Mar'2009 to Dec'2009 when the agreement was entered into with treeline the price was moved to Rs. 637/- (2 times the previous price)and from dec to July in a period of another 6 months i am not surprised if they do a 1.25 times to 1.5 times of the previous price.

Justification might come from their huge growth in operational numbers such as branches, loan officers and disbursements/advances to the poor but also from exponential growth in their PAT numbers.

And when the question of Catamaran deal was asked in the meeting ent, Dr. Akula replied that it was a strategic decision to get Mr. NRN on to the advisory council board as its chairman and this investment was a result of negotiations they were having with him since many months.

http://www.moneycontrol.com/news/ipo-issues-open/care-assigns-grade-45-to-sks-microfinance-ipo-_470387.html

It's compartamos.
But sks cannot be be compared only by market cap basis but profit wise. It should list between 5000 to 7000 cr. Mcap.

hi everyone. I think this issue will be getting much attention and euphoric response since it is the first of its kind Microfinance IPO. But I think that it is going to be expensive going by the recent PE deals who entred in early 2010 of this year. In addition Mr. Akula has made a very neat profit when he sold earlier in the year. Makes me wonder that if the promoter is selling out most of his stake what should an individual investor think.