SKS Microfinance Market Capitalization crosses US$ 2 Billion
September 4, 2010 by Microfinance Africa
From India Microfinance -
SKS Microfinance has risen by more than 30% on it’s issue price of Rs 985 .
The market capitalization of SKS Microfinance, India’s largest micro finance company which listed on the stock markets on the 16th August 2010 has crossed US$ 2 Billion in a short span of two week. The stock also made a new 52 week high of Rs 1312.80 in todays trade. SKS Microfinance currently has 7,19,72,542 shares outstanding which at todays closing price of Rs 1286.70 gives the company a market capitalization of US$ 2.01 Billion.
Ever since it listed SKS Microfinance’s stock has seen a relentless and meteoric rise beating the subdued market sentiment prevalent in other sectors. Narayan Murthy who bought shares of SKS Microfinance through his Cataraman Fund at Rs 300 is looking at gains of more than 320% in a short span of 6 months.
Stock Price of SKS Microfinance since it’s listing
Market sources report that investors and traders are buying SKS Microfinance’s stock and are expecting positive news flow about the company in the coming days.Some market players believe that the price rise is because there are not many shareholders who are willing to sell their shares at these levels. There is also speculation among market participants that SKS Microfinance may be included in one of smaller indexes in the coming months. This is seen as a positive for the stock as many index based mutual funds would then buy the stock.
SKS Microfinance’s IPO was totally oversubscribed 13.69 times. The qualified institutional investors portion was oversubscribed 20.38 times, non-institutional investors was oversubscribed 18.26 times and retail investors portion was over subscribed 2.81 times.
SKS Microfinance’s IPO was able to attract blue chip FII’s and anchor investors which included funds managed by Morgan Stanley, BNP Paribas, Soros’s Quantum Fund, Goldman Sachs Group and JPMorgan Chase.Anchor Investors in SKS Microfinance have a lock in period of 30 days on shares alloted to them in the IPO and are yet to sell their shares in the secondary markets.
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