New Delhi: 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 percent during the April-June quarter amid a sharp rally in the company's share price.
Foreign Institutional Investors (FIIs), which held 38.36 percent stake in SKS in the first quarter, raised it to 44.61 percent 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 percent 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 percent 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 percent surge in SKS share price between April and June, while the BSE benchmark index Sensex grew by over 13 percent 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.
First Published: Thursday, July 24, 2014, 16:56