SKS falls 9% on regulatory fears
Going by its last close, the SKS scrip has shed nearly 60% as compared to its peak of Rs 1,491 scaled during the good times on September 28.
By TNN & Agencies |
HYDERABAD/MUMBAI: There seems to be no end to the run of bad luck at India’s largest and only listed microfinance player, SKS Microfinance.
On Monday, the SKS stock on the BSE lost nearly 10% to plummet below the Rs 600 mark for the first time since listing in August this year, and closed at Rs 604, down 8.8%. Going by its last close, the SKS scrip has shed nearly 60% as compared to its peak of Rs 1,491 scaled during the good times on September 28.
The stock has been sliding over the past three trading sessions ever since the Andhra Pradesh assembly passed a bill to regulate MFIs in the state late on December 14. Since its close that day, SKS has lost 19% while investors have been left poorer by about Rs 1,000 crore with its current market capitalization at Rs 4,348 crore.
Dealers pointed out that on Thursday foreign broking major Citi had come out with a report on SKS with a target price of Rs 600. The report is all the more damaging because it was Citigroup Global Markets that was one of the three lead managers to SKS’ IPO which was sold to investors at Rs 985.
On Monday, the SKS stock on the BSE lost nearly 10% to plummet below the Rs 600 mark for the first time since listing in August this year, and closed at Rs 604, down 8.8%. Going by its last close, the SKS scrip has shed nearly 60% as compared to its peak of Rs 1,491 scaled during the good times on September 28.
The stock has been sliding over the past three trading sessions ever since the Andhra Pradesh assembly passed a bill to regulate MFIs in the state late on December 14. Since its close that day, SKS has lost 19% while investors have been left poorer by about Rs 1,000 crore with its current market capitalization at Rs 4,348 crore.
Dealers pointed out that on Thursday foreign broking major Citi had come out with a report on SKS with a target price of Rs 600. The report is all the more damaging because it was Citigroup Global Markets that was one of the three lead managers to SKS’ IPO which was sold to investors at Rs 985.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
