SKS microfinance shares drop 11%, slip below listing price

Microfinance Focus, Oct 25, 2010: At 11.14 hrs this morning, SKS Microfinance shares dropped 11% and slipped below its issue price on Bombay Stock Exchange. The shares showed a drop of Rs. 114.7 and were trading at Rs. 939. The company’s shares were listed at Rs. 1036, at a premium of 5.17 per cent over its issue price of Rs 985 per share.

Earlier this morning, there were reports that Finance Minister could move a bill in the winter session to make NABARD, the regulatory body for non-profit microfinance institutions.

SKS Microfinance sacked its CEO Mr. Suresh Gurumani and appointed Mr. M R Rao as the new CEO and Managing Director of the company. Few of the company’s officials and field staffs have also been arrested in Andhra Pradesh on charges of coercive lending practices last week.

© 2010, Microfinance News. All rights reserved. 2008-09