Bangalore: In response to the developments in the Microfinance institutions (MFI) sector in Andhra Pradesh, microfinance institutions (MFIs) possessing an equity base of over 500 crore are now being cautious. Following the suicides among rural borrowers who allegedly did not have the ability to repay, the State Government issued an ordinance to verify the functioning of MFIs and the continuing legal battle on the ordinance. After the success of SKS Microfinance that had adopted the IPO route to raise $350 million in July, MFIs such as Spandana Spoorthy and Share Microfinance, both based in Andhra Pradesh, are looking forward to tap the capital market. Industry leaders feel that this is logical and makes sense only under prevailing circumstances although the MFIs are reluctant to admit that they are cautious in their approach. "Certainly this is not the best time (for MFIs) to look for capital, especially using the IPO route," admits Vijay Mahajan, President of Micro Finance Institutions Network (MFIN), a MFIs apex body. The 30,000-crore loan portfolio of MFIs in the country is dominated by about 10 major MFIs.