SKS Microfinance down over 8% on BSE
Mumbai: Shares of SKS Microfinance on Friday slumped over 8 percent, after the company said it expects to incur an operational loss in the first quarter of 2012-13 that may range between Rs 30 crore and Rs 50 crore.
After opening weak, shares of the company continued to lose ground and as the trade progressed, it further shed 8.47 percent to Rs 83.20 on the BSE.
"The slump in the stock was mainly due to disappointing Q1 FY13 guidance by the company. This clearly shows that the business operations of the company are not running smoothly," Ashika Stock Broking Research Head Equities Paras Bothra said.
In a BSE filing Friday, the company said: "An increase in the amount of loans assigned by SKS towards the end of the quarter ended March 31, 2012, resulted in increased levels of cash and bank balances of about Rs 6,899.8 million as of March 31, 2012, that was not quickly redeployed, which in turn resulted in a relatively lower outstanding portfolio of loans.
"These and other factors resulted in our operational income being insufficient to meet the finance costs, personnel expenses and operating expenditure of the company which remained relatively unaffected by the factors discussed above."
The company also said that adverse financial performance may continue for the rest of fiscal 2013.
Meanwhile, in a separate filing, the company said it has fixed the floor price of Rs 75.40 per share for qualified institutional placements (QIP), which opened on Thursday.
The board has also approved preferential allotment of 44.5 lakh equity shares at issue price of Rs 75.40 per share to Kumaon Investment Holdings, a subsidiary of WestBridge Ventures II, LLC, a promoter of the company.
In the broader market, the BSE benchmark Sensex was trading at 17,278.47, up 45.92 points at 1142 hrs.
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