FII stake in SKS at record high of 45 pc in April-June

The Political and Business Daily - - CORPORATE -

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 all­time 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 June 30, 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% stake in the mi­cro fi­nance firm at the end of June 30, 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% dur­ing the April-June quar­ter of 2012.

In terms of num­bers, the FII count jumped to 75 at the end of June 30, 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.

SKS stock is cur­rently trad­ing at Rs 277 level per share at the stock ex­changes. 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 Ini­tial Pub­lic Of­fer at a price of Rs 985 apiece.

An­a­lysts be­lieves that var­i­ous steps taken by SKS in­clud­ing for its re-brand­ing and repo­si­tion­ing work has helped FIIs to rush to­wards it.

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