SKS Microfinance opens QIP issue

It will be worth Rs 400 cr; floor price fixed at Rs 235.06/share

SKS Microfinance Limited has informed BSE that it opened a qualified institutional placement(QIP) issue on Monday while fixing the floor price at Rs 235.06 per share.

The company shareholders recently approved the QIP issue worth Rs 400 crore that can be raised through an issue in India or through international offerings in one or more foreign markets.

QIP is a designation of a securities issue given by the Securities and Exchange Board of India (Sebi) that allows a locally listed company to raise capital from its domestic market without having to submit any pre-issue filing to the market regulators.

"The said issue is being carried out in accordance with the resolution passed by the shareholders of the company through postal ballot on April 12, 2014," the company said and added that the board has fixed May 19 as the relevant date for the purpose and the floor price was fixed accordingly.

The company recently reported a net profit of Rs 27.11 crore for the quarter ending march, 2014 as compared to Rs 2.70 crore in the corresponding quarter last year.

The SKS share price rose by Rs 4.80 or 1.9 per cent in Tuesday's trading to close at Rs 257.35 on the BSE.