SKS Microfinance continues to rally, up over 8% on BSE

Reflecting huge investor confidence, the country's largest microfinance firm SKS Microfinance continued its rally for the second consecutive day on the BSE by rising over 8 per cent to touch a year-high.

Shares of SKS Microfinance stole the show for the second day and climbed 8.40 per cent to settle at Rs 1,179.99 on the Bombay Stock Exchange. During the trade, the scrip zoomed 9.31 per cent to touch a 52-week high of Rs 1,190.

Yesterday, the SKS counter settled over 10 per cent on the BSE, marking a handsome debut for itself.

"The company has a unique business model. The kind of growth it witnessed during the last 3-4 years is stupendous. Investors confidence have propelled rise in the stock, which includes domestic institutional investors as well foreign investors," Unicon Financial Services CEO Gajendra Nagpal said.

"The company that lends credit to rural poor especially women, had received tremendous response from the investors during its IPO. The rally in the stock can be seen for some more trading sessions," he added.

A similar kind of upsurge was seen on the National Stock Exchange, where the Hyderabad-based company closed at Rs 1171, up 7.56 per cent.

During the trade, it jumped 9.12 per cent to hit a high of Rs 1188.

Analysts feel that upsurge in the stock will continue for the days to come as it is the first microfinance company in the country and one can hold on the stock on that account.

On the second day of trade, a total of over 89 lakh shares of the Vikram Akula founded firm changed hands on the two bourses.

The rise in the stock was significant as the broader market Sensex settled down by 1.93 points at 18,048.85.

The public issue of 1.6 crore shares of SKS was priced in the range of Rs 850 to 985 a share.

The company had entered the capital market on July 28 and raised Rs 1,654 crore through its initial public offer.