SKS plunges as company foresees losses

Stocks

oi-Sneha

By Sneha B K

Updated: Friday, July 13, 2012, 13:05 [IST]

Shares of the company plunged by 6% after company reported in a filing that it expects to incur an operational loss in the first quarter of fiscal 2013, that may range between Rs 300 million and Rs 500 million or higher.

Adding further, the company also said that the adverse financial performance of the Company may continue for the rest of Fiscal 2013.

Mentioning the reason as increase in the amount of loans assigned by SKS Microfinance Limited ("the Company") towards the end of the quarter ended March 31, 2012 resulted in increased levels of cash and bank balances of about Rs. 6,899.8 million as of March 31, 2012 that was not quickly redeployed, which in turn resulted in a relatively lower outstanding portfolio of loans.

These and other factors resulted in our operational income being insufficient to meet the finance costs, personnel expenses and operating expenditure of the Company. which remained relatively unaffected by the factors discussed above, the company stated in the statement.

In a separate filing, the company that it has fixed the floor price of Rs 75.40 per equity share for qualified institutional placements (QIP) which opened yesterday.

The SKS board has also approved a preferential allotment of 4.45 million equity shares at issue price of Rs. 75.40 per share to Kumaon Investment Holdings, a foreign institutional investor and a 100% subsidiary of WestBridge Ventures Il, LLC, a promoter of the company, the company further added.

At 11.10 am IST, the shares of the company were seen trading at Rs 84, lower by 6.60% on BSE.

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