SKS Microfinance advances after fund raising

SKS Microfinance surged 4.81% to Rs 378.35 at 11:33 IST on BSE after the company issued Commercial Papers of an aggregate amount of Rs 70 crore on 16 December 2014, which have been rated A1+ by a leading rating agency.

The announcement was made after market hours yesterday, 17 December 2014.

Meanwhile, the BSE Sensex was up 220.82 points, or 0.83%, to 26,930.95.

On BSE, so far 2.31 lakh shares were traded in the counter, compared with an average volume of 3.78 lakh shares in the past one quarter.

The stock hit a high of Rs 384.30 and a low of Rs 366.75 so far during the day. The stock hit a 52-week high of Rs 403.70 on 12 December 2014. The stock hit a 52-week low of Rs 163.70 on 10 January 2014.

The stock had outperformed the market over the past one month till 17 December 2014, falling 0.55% compared with the Sensex's 5.21% fall. The scrip had also outperformed the market in past one quarter, rising 16.25% as against Sensex's 0.3% rise.

The mid-cap company has an equity capital of Rs 126.06 crore. Face value per share is Rs 10.

SKS Microfinance said that the company issued Commercial Papers of an aggregate amount of Rs 70 crore on 16 December 2014, which have been rated A1+ by a leading rating agency. Instruments with the aforesaid rating are considered to have a very strong degree of safety regarding timely payment of financial obligations, SKS Microfinance said. Such instruments carry the lowest credit risk. The aggregate Commercial Paper outstanding as on date is Rs 150 crore, it added.

SKS Microfinance's net profit jumped 247.3% to Rs 56.75 crore on 48.7% rise in total income to Rs 201.02 crore in Q2 September 2014 over Q2 September 2013.

SKS Microfinance is a non banking financial company - micro finance institution (NBFC-MFI), registered and regulated by the RBI, whose mission is to provide financial services to low-income households. SKS operates across 15 states of India. They include: Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala and Punjab.

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