CARE assigns ‘IPO Grade 4’ to SKS Microfinance IPO

MUMBAI: CARE has assigned a ‘CARE IPO Grade 4’ to the IPO of SKS Microfinance, indicating above average fundamentals of the company.

The grading reflects SKSML's position as one of the largest players in the Indian micro finance industry having pan India operations with a well diversified portfolio.

It considers the strong financial position with healthy margins including good asset quality, comfortable capitaladequacy ratio, comfortable liquidity position and access to diverse sources of institutional funding.

The grading is however moderated by company's sensitivity to operational risk on account of large volume of cash transactions & decentralized operations spread across the country.