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SKS Microfinance gains on completing Rs 158.27 crore securitization

24 Feb 2014 Evaluate

SKS Microfinance is currently trading at Rs. 186.80, up by 3.95 points or 2.16% from its previous closing of Rs. 182.85 on the BSE.

The scrip opened at Rs. 184.85 and has touched a high and low of Rs. 187.90 and Rs. 184.50 respectively. So far 38,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 209.85 on 24-Dec-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. 188.50 and Rs. 181.50 respectively. The current market cap of the company is Rs. 2,016.00 crore.

The promoters holding in the company stood at 27.90 % while Institutions and Non-Institutions held 43.38 % and 28.72 % respectively. SKS Microfinance has completed the seventh substantial microfinance securitization during the current financial year of Rs 158.27 crore. With this, the total sum of securitizations completed for FY14 (YTD) is Rs 1,108.29 crore. The first six substantial securitizations were: Rs 321 crore (on September 30, 2013), Rs 80.81 crore (on December 11, 2013), Rs 215 crore (on December 19, 2013), Rs 55 crore (on December 30, 2013), Rs 55.56 crore (on January 30, 2014) and Rs 222.65 crore (on February 11, 2014).

SKS Microfinance has downloaded the receivables from micro loans extended to more than 180,000 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, 35% of the pool represents women entrepreneurs from Scheduled Castes and Scheduled Tribes, 11% from minorities, 38% from Backward Castes and the remaining 16% from women belonging to the Other Castes. The entire pool comprises receivables from women entrepreneurs belonging to weaker sections.

The pool is rated AA (SO) by a leading rating agency signifying ‘a high degree of safety regarding timely servicing of financial obligations’. Such instruments carry a very low credit risk.

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