SKS Microfinance gains after QIP oversubscribed

The company received strong response for its Rs 400 crore QIP which was oversubscribed several times

Shares of SKS Microfinance were up over 4% at RS 283 after its Rs 400 crore qualified institutional placement (QIP) evoked a strong response and was oversubscribed several times.

"The QIP will enable us to augment our member base from the present 4 million to 8.5
million over the next three years, and meet their credit requirements,” the company said in a release quoting Mr. M.R. Rao, Managing Director and Chief Executive Officer, SKS Microfinance Limited.

SKS Microfinance Limited’s networth of Rs. 459 crore as of March 31, 2014 will cross Rs.

850 crore (approximate) post the QIP, the release said.

The stock opened at Rs 275 and hit a high of Rs 286 on the Bombay Stock Exchange. Over 870,000 shares were traded on both the stock exchanges so far.