SKS Microfinance lost 20% in early morning trade on NSE dropping to lower circuit at Rs 360 before recovering to Rs 390.Previous Closing was Rs 450
This defining fall was the consequence of not having made it to the RBI List of 10 lending entities shortlisted from 72 applicants to become mini banks for advancing to the unbanked and small farmers and other segments that do not receive funding from the bigger banks.Interestingly eight of the ten short listed are microlenders
I have never been a fan of SKS Micro and it’s Promoters and had warned in 2010 to avoid the obscenely priced IPO in the price band of Rs 850 to Rs 985 more so as it involved an unhealthy element of Offer for Sale by Sequoia Capital.Also was critical of Promoter Vikram Akula’s mindset too in profiting by himself exiting a large shareholding at an obscene price prior to the issue.Here’s the story I posted in 2010.The share Price collapsed after the IPO and even dropped below Rs 100 to Rs 90 in 2011 and even lower to Rs 54 in 2012 before recovering smartly to touch a 52 Week High of Rs 590 on July 31,2015
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Out of context Gaurav, but any idea why Innovasynth got suspended from trading ?