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SKS Microfinance gains on completing securitization transaction worth Rs 80.81 crore

12 Dec 2013 Evaluate

SKS Microfinance is currently trading at Rs. 175.00, up by 3.45 points or 2.01% from its previous closing of Rs. 171.55 on the BSE.

The scrip opened at Rs. 173.00 and has touched a high and low of Rs. 176.00 and Rs. 172.75 respectively. So far 42,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 198.90 on 13-Dec-2012 and a 52 week low of Rs. 95.60 on 24-May-2013.

Last one week high and low of the scrip stood at Rs. 176.00 and Rs. 169.05 respectively. The current market cap of the company is Rs. 1,893.00 crore.

The promoters holding in the company stood at 28.62% while Institutions and Non-Institutions held 42.03% and 29.35% respectively.

SKS Microfinance has concluded the second microfinance securitization during the current financial year of Rs 80.81 crore. The company has downloaded the receivables from micro loans extended to 100,850 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a major private sector bank. Notably, the entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines.

The pool is rated AA (SO) signifying 'High Degree of Safety regarding timely servicing of financial obligation' by one of the leading rating agencies. The pool is structured with geographical diversity as it comprises receivables from 12 non-Andhra Pradesh states and subjected to a minimum seasoning of three months.

Notably, 30% of the pool is from Scheduled Caste and Scheduled Tribe entrepreneurs, 16% from minorities, 37% from Backward Caste and the remaining 17% from women belonging to the Other Castes. The entire pool comprises receivables from women entrepreneurs from weaker sections.

SKS Microfinance (SKS) is a non-banking finance company (NBFC), registered and regulated by the Reserve Bank of India, whose mission is to provide financial services to low-income households. SKS operates across 16 states of India. 

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