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SKS Microfinance gains on completing Rs 215 crore securitization

19 Dec 2013 Evaluate

SKS Microfinance is currently trading at Rs. 178.70, up by 2.35 points or 1.33% from its previous closing of Rs. 176.35 on the BSE.

The scrip opened at Rs. 179.70 and has touched a high and low of Rs. 181.05 and Rs. 178.70 respectively. So far 28,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 190.40 on 09-Jan-2013 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. 181.05 and Rs. 167.40 respectively. The current market cap of the company is Rs. 1,933.00 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 completed its third substantial microfinance securitization during the current financial year of Rs 215 crore. The first two substantial securitizations being Rs 321 crore announced by the Company on September 30 and Rs 80.81 crore on December 11. 

With this, the total sum of securitizations completed for FY-14 (YTD) is Rs 616.81 crore. This transaction is priced at a good 200 basis points lower than our cost of borrowing for the previous quarter. 

Meanwhile, the company has downloaded the receivables from micro loans extended to more than 2,50,000 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a major private sector bank. The entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines. 

Notably, 27% of the pool is from women entrepreneurs from Scheduled Castes and Scheduled Tribes, 21% from minorities, 37% from Backward Castes and the remaining 14% from women belonging to the Other Castes. The entire pool comprises receivables from women entrepreneurs from weaker sections. 

The pool is rated A + (SO) by a leading rating agency signifying adequate degree of safety regarding timely servicing of financial obligation. Such instruments carry low credit risk. 

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