Majority of financiers are planning to raise their funds through capital market.

SKS Microfinance, the largest microfinance institution (MFI) in the country, also found the strategy of initial public offering (IPO) as the best for the company, to raise the capital of Rs. 1.68 crore shares .

Similar is the case with Standard Chartered Bank, who is also planning to raise a capital of $1 billion through Indian depository Receipts issue.

There are two main shareholders in SKS; venture capital firm Sequoia and N. R. Narayana Murthy's Catamaran Management Services.

SKS provide loans to poor women especially in rural areas. The loans are made available to these people so that they can use this amount in their small businesses to generate a suitable amount of income.

As per Crisil report titled India Top 50 Microfinance Institutions in 2009, MFI is revealed as the country's top most financial institution in terms of its total value of loan outstanding, number of branches in India and number of borrowers.

SKS and Sequoia Capital have planned to relieve 93.46 lakh shares through IPO. Earnings from the IPO will be used for raising the capital and providing loans to the needful.

Analysts are of the view that, this is the first time in the history that MFI comes up with IPO so there is no yardstick with whom one can measure its price and P/E ratio. The company is hoping that it will get a huge response from public.