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FIIs raise stake in SKS Finance from 38.36% to 44.61% in 3 months

Continuing with the bullish stance on SKS Microfinance, India’s only listed player in the sector, foreign investors have hiked their stake in it to all-time high of 44.61 per cent during the April-June quarter amid a sharp rally in the company’s share price.

Foreign Institutional Investors (FIIs), which held 38.36 per cent stake in SKS in the first quarter, raised it to 44.61 per cent at the end of 30 June, as per the latest information available with the stock exchanges. This marks the third quarterly increase in FII holding in SKS. FIIs have been raising their exposure in the Hyderabad- based firm since June last year.

They had 35.83 per cent stake in the micro finance firm at the end of 30 June, 2013. Moreover, FIIs have been shoring-up their holding in SKS in the past few quarters after it hit a record low of 8.33 per cent during the April-June quarter of 2012. In terms of numbers, the FII count jumped to 75 at the end of 30 June, from 52 in the preceding three months. There was 35 per cent surge in SKS share price between April and June, while the BSE benchmark index Sensex grew by over 13 per cent during the period.

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 clamp down on micro finance institutions following a spate of suicides by small borrowers amid allegations of strong-arm recovery tactics adopted by them. The company’s scrip touched its 52-week high of Rs 309.90 last month. The company had debuted on the bourses after sale of shares in the Initial public offer at a price of Rs 985 apiece.
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