SKS Microfinance fell 13.66% to Rs 388.80 at 10:37 IST on BSE after the company failed to bag the small bank license from the Reserve Bank of India.
Meanwhile, the BSE Sensex was up 435.39 points, or 1.68%, to 26,399.36.
On BSE, so far 10.19 lakh shares were traded in the counter, compared with an average volume of 2.31 lakh shares in the past one quarter.
The stock hit a high of Rs 406 and a low of Rs 376.65 so far during the day. The stock hit a 52-week high of Rs 589.50 on 31 July 2015. The stock hit a 52-week low of Rs 278 on 26 September 2014.
The stock had underperformed the market over the past one month till 16 September 2015, sliding 16.36% compared with 7.49% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 2.93% as against Sensex's 2.71% decline.
The mid-cap company has an equity capital of Rs 126.75 crore. Face value per share is Rs 10.
The Reserve Bank of India (RBI) on Wednesday, 16 September 2015, granted 10 entities in-principle licences to open small finance banks.
Ujjivan Financial Services, Janalakshmi Financial Services and Equitas Holdings are among the 10 entities. The others are Au Financiers (India), Capital Local Area Bank, Disha Microfin, ESAF Microfinance and Investments, RGVN (North East) Microfinance, Suryoday Micro Finance and Utkarsh Micro Finance.
Larger financial services firms such as SKS Microfinance did not qualify for the licence. No publicly traded entities have been included in the list.
SKS Microfinance had also failed to get a payments bank license, which RBI granted in August 2015.
Small finance banks will offer basic banking services, accepting deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries, and entities in the unorganized sector, RBI said when it released guidelines for such banks in November 2014.
SKS Microfinance's net profit rose 24% to Rs 61.16 crore on 67.3% rise in total income to Rs 282.64 crore in Q1 June 2015 over Q1 June 2014.
SKS Microfinance is among the largest microfinance companies in India. The company's mission is to provide financial services to the economically weaker sections.
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