FII stake in SKS soars to record high of 44.72% in Jul-Sep qtr

Foreign investors had 35.83% stake in the micro finance firm at the end of June 30, 2013

Continuing with the bullish stance on SKS Microfinance, foreign investors have hiked their stake in it to all-time high of 44.72% during the July-September quarter amid a sharp rise in the company's share price.

Foreign Institutional Investors (FIIs), which held 36.90% stake in SKS at the end of September 30 last year, raised its stake to 44.72% during the July-September quarter of 2014-15, as per the latest information available with the stock exchanges.

This marks the fourth quarterly increase in FII holding in SKS Microfinance, India's only listed player in the sector.

FIIs have been raising their exposure in the Hyderabad- based firm since June last year. They had 35.83% stake in the micro finance firm at the end of June 30, 2013. Their holding stood at a record low of 8.33% during the June quarter of 2012.

In comparison, overseas investors had 44.61% stake in the microfinance firm in the June quarter this year.

In terms of numbers, the FII count jumped to 91 at the end of September quarter this year from 75 in the preceding three-month period.

There was over eight% surge in SKS share price between July and September, while the BSE benchmark index Sensex moved up around 4.78% during the period.

SKS stock was trading at Rs 316 per share on the BSE today. The company's scrip had touched its 52-week high of Rs 348.35 last month.

However, the stock had taken a major beating since its listing in August 2010 at a price of over Rs 1,000 per share. There had been a major policy clampdown on micro finance institutions following a spate of suicides by small borrowers amid allegations of strong-arm recovery tactics adopted by them.

The company had debuted on the bourses after sale of shares in Initial Public Offer at a price of Rs 985 apiece.

Analysts believes that company's good performance on financial front and strong loan portfolio has helped FIIs to rush towards it.

During the quarter, SKS's net profit jumped to Rs 56.8 crore from Rs 16.3 crore in the year-ago period. Besides, the company's revenues rose to 190.11 crore from Rs 129.95 crore during the three months ended September 30, 2013.