Foreign Institutional Investors have hiked their stake in SKS Microfinance to an all-time high of 36.9 per cent during July-September quarter amid a sharp rally in the company’s share price.

FIIs, which held 35.83 per cent holding in SKS Microfinance during July-September quarter last fiscal, has raised its stake to 36.90 at the end of September 30, 2013, as per latest information available with the stock exchanges.

FIIs have been raising their exposure in the Hyderabad-based firm during the past few quarters, after hitting a record low level of 8.33 per cent during April-June 2012-13.

The increase in FII shareholding coincided with a surge of 17 per cent in the share price of SKS between July and September this year, while the BSE benchmark’s Sensex grew one per cent during the period under review.

The stock has taken a major beating since its listing in August 2010 at a price of over Rs 1,000 per share and is currently trading at Rs 160 level per share at the stock exchanges. The company had debuted on the bourses after IPO share sale at Rs 985 a piece.

Analysts believes that various steps taken by SKS, including appointment of marketing strategist Jack Trout for its re-branding and repositioning work, has helped FIIs to rush towards it.

Besides, the microfinance firm has been successfully able to transfer its debt to securitisation and that has improved its cash flows and credit ratings.

Meanwhile, the number of FIIs in SKS Microfinance stood at 48 during July-September this fiscal, up from 42 at the end of the preceding three months.

Besides, domestic institutional investors’ stake in SKS climbed to 5.13 per cent for the quarter ended September 30, 2013, from 5.08 per cent in the preceding three months.

On the other hand, the total promoters’ holding fell to 28.62 per cent during the quarter under review from 27.09 per cent in July-September last fiscal.

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