SKS Microfinance shares surge on completion of securitisation deals

MUMBAI: Shares of SKS Microfinance hit a 10 per cent upper circuit after the company concluded two microfinance securitization transactions aggregating to Rs 390 crore.

"The present transactions generate liquidity of Rs 370 crore for SKS Microfinance and also bring in the concomitant capital relief," said S. Dilli Raj, Chief Financial Officer, SKS Microfinance Limited.

"Notably, 26% of the pool is from Scheduled Caste and Scheduled Tribe entrepreneurs, 18% from minorities, 34% from Backward Castes and the remaining 22% from women belonging to other castes. The transactions have helped us provide working capital access to 5,00,000 women rural entrepreneurs while enabling the purchasing banks to achieve their Priority Sector loan obligations."

SKS Microfinance has completed seven securitization transactions aggregating to Rs 803 crore in FY13.

The two pools are rated A1+(SO) signifying 'Highest Safety' by one of the leading rating agencies.

At 10:00 a.m.; the stock was at Rs 145.65, up 9.97 per cent, on the NSE. It touched a high of Rs 133.05 and a low of Rs 128 in trade today.