In August 2010, SKS Microfinance (SKS) were in India (and South Asia), first stock market listed and publicly traded microfinance institutions (MFIs). Share in the company was offered for INR 985 and it began trading on INR 1036, a small premium to begin with, but in the end, INR 1404 per month. Unfortunately, this degree of good news, as far as the company and its shareholders were concerned. Things then began to unravel quickly. Initial Public Offering (IPO) of shares is considered as the beginning of the conflict between the interests of shareholders and poor rural borrowers, he had to serve. In addition, the company laid off may have a successful chief executive officer due to "personal problems" within a few days after the post-listing a 40-day period of silence. Issues were compounded when 30 women who were microfinance borrowers ended their lives in a span 45 days, 13 of which are reported to have been members of the SKS. The provincial government in Andhra Pradesh, the center of microfinance in the country, led the ruling effectively curb microfinance lending and recovery operations, and in May 2011, the Reserve Bank of India, the country's banking regulator, issued a notification placing caps on interest rates, margins, and in minimum in office for a relatively large loan. Was this the end of the road for the microfinance movement in India? "Hide
by Srinivasan Sunderasan Source: Richard Ivey School of Business Foundation 12 pages. Publication date: April 20, 2012. Prod. #: W12906-PDF-ENG
Related Case Solutions & Analyses:
Artisan Entertainment Inc.
Northern Telecom (A): Greenwich Investment Proposal (Condensed)
Hanson Industries (A)
Sanofi-Aventis’s Tender Offer for Genzyme
Flash Memory Inc.
Barclays Bank, 2008
White Hills Children’s Museum
Lessons From the Crisis for Corporate Finance
Target Corporation
Note on Generally Accepted Accounting Principles
