Shares of SKS Microfinance today surged by 5% to its highest permissible level for the day— a day after the company's founder and executive chairman Vikram Akula resigned from its board.
The shares rose to as high as Rs 121.80, up 5% from its previous close, within seconds of the commencements of trading in the stock market this morning.
This was the highest permissible limit on the BSE for the stock, on which the exchange has imposed a five% circuit filter— a mechanism that limits any upward or downward movement in the share price by this margin.
The country's only listed micro finance institution said last night that Akula would continue with SKS as a "consultant" till March 2012 and "assist with the transition."
SKS did did not give any reason for the resignation, which has come in the midst of huge losses suffered by the company, and said that P H Ravikumar has been appointed as its interim Non-executive Chairman.
The company said it was not offering any severance package to Akula. However, it has signed certain non-compete and confidentiality agreements with Akula, who founded the company in December 1997 and made history when SKS IPO was overbought 14 times and was listed with 11% premium over issue price of Rs 985 in July 2010.