Foreign Investor Stake in SKS Microfinance Hits Record High in September Quarter

NDTV Profit Desk

28 Oct 2014, 04:21 PM IST

New Delhi: Continuing with their bullish stance on SKS Microfinance, foreign investors have hiked their stake in the company to an all-time high of 44.72 per cent during the July-September quarter amid a sharp rise in its share price.

Foreign institutional investors (FIIs), which held a 36.90 per cent stake in SKS at the end of September 30 last year, raised their stake to 44.72 per cent during the July-September quarter of 2014-15, as per the latest information available with the stock exchanges.

This marks the fourth quarterly increase in FII holding in SKS Microfinance, India's only listed player in the sector.

FIIs have been raising their exposure in the Hyderabad-based firm since June last year. They had a 35.83 per cent stake in the micro finance firm at the end of June 30, 2013. Their holding stood at a record low of 8.33 per cent during the June quarter of 2012. In comparison to this, overseas investors had a 44.61 per cent stake in the microfinance firm in the June quarter this year.

In terms of numbers, the FII count jumped to 91 at the end of September quarter this year from 75 in the preceding three-month period.

There was an over 8 per cent surge in SKS share price between July and September, while the BSE benchmark index Sensex moved up around 4.78 per cent during the period.

On Tuesday, SKS Microfinance shares ended over 1 per cent lower at Rs 316 on the BSE. The stock had touched its 52-week high of Rs 348.35 last month.

However, the stock had taken a major beating since its listing in August 2010 at a price of over Rs 1,000 per share.

There had been a major policy clampdown on micro finance institutions following a spate of suicides by small borrowers amid allegations of strong-arm recovery tactics adopted by them.

The company had debuted on the bourses after sale of shares in its IPO at a price of Rs 985 apiece.

Analysts believe the company's good performance on the financial front and strong loan portfolio has helped FIIs to rush towards it.

During the quarter, SKS's net profit jumped to Rs 56.8 crore from Rs 16.3 crore in the year-ago period. Besides, the company's revenues rose to 190.11 crore from Rs 129.95 crore in July-September 2013.