One of India's largest microfinance firm Spandana Sphoorty Financial has shortlisted three financials firms for taking care of its IPO.

The total worth of the issue is $400 million and the name of the firms is Morgan Stanley, Citi and JM Financial.

Information was given by one of the person who is close to the development and did not want to be named. As per the source, the issue will be coming up by next year.

No official statement was made from Spandana. The source also added that the necessary papers have been filed with the regulator and is awaiting the approval.

The decision was taken by the firm after SKS Microfinance, the largest in India, got a strong review from the market. George Soros, one of the leading investors of US has also invested in it.

There are other microfinance group's as well which are now seeking to enter the capital market. Some of the most prominent ones in this field are Share Microfin Ltd, Asmitha Microfin and Bhartiya Samruddhi Finance.

There are 400 such institutions running in India and are catering to a population of 70 million.