What do you think about NGOs turned private companies listing in stock market?

[Nagarick]

I read 'A Fistful of Rice' book. Since microfinance is touching all
ultra poor people all over India, it is important to understand is
this the right way or not.

Questions based on review of the book
------------------------------------------------------
What are the consequences of making such companies listed in stock
market?
Should such company be owned/run by members (borrowers in this case)?
Is this modern 'vethbigari' (वेठबिगारी) especially its interest
charged on loan is so high?
How will you run such company (profit/nonprofit) keeping operating
costs/interests down?


Review of the book
---------------------------
“The goat economics of ultra poor in rural India and SKS microfinance.
This book is about SKS Microfinance, the only listed microfinance
company in India, primarily in Andhra Pradesh state. The book
discusses the ethical dilemma of 'for profit or not' while offering
microcredit to ultra poor in rural India, since few think that 'for
profit' approach is exploiting poor with interest rate of 28%. The
author also discusses his personal married life while working in India
and USA simultaneously. The author also discusses expansion plans of
the organization offering distribution channels for companies
targeting this ultra poor market segment through foot soldiers (loan
officers) of the company. It is an interested 'for profit' approach,
since most consider not-for-profit approach for poor. Considering
their loan repayment rate is 99%, the book is worth reading as it
talks about how they do it - participatory rural appraisal, groups of
five women, 3 Cs, building software to run company, finding and
training employees, raising money - silicon valley VCs, scratch-my-
back politicians, corruption in government loan approvals, threats of
local scumbags etc.

You could read Mohammad Yunus' books about Grameen bank that talks
about microfinance in Bangladesh. Mr. Yunus is critical of for-profit
approach. The author also mentions the CK Prahalad's book - The
fortune at bottom of the pyramid. The other microfinance players
mentioned in this book are Grameen bank, Basix, Cashphor, Share, ASA
and infamous Compartamos.

Recently, MFI (Microfinance institutes) in India are under microscope
due to high interest rates (some charge 50 to 60%), coercive practices
and suicides of women borrowers, greed(?) of private investors, fear
of will this lead to FOR-PROFIT-ONLY microfinance sector in India etc.
The book doesn't address these challenges e.g. I couldn't find
percentage breakdown ownership of SKS finance, especially when its IPO
is oversubscribed 13 times and raised Rs 1,300 crore.