The stock of SKS Microfinance yesterday touched a new low of Rs 597. The previous 52 week low price of Rs 639.45 had been made on November 18.
The stock of India’s most controversial microfinance company SKS had opened for trading at Rs 660 yesterday morning but by afternoon had slipped down by more than 9 % and eventually closed the session at Rs 603.85. Some analysts are attributing this drop in share price to rumors circulating among market participants about the financial health of SKS Microfinance.Some brokers said they had received unconfirmed reports that Banks have stopped fresh disbursements to SKS Microfinance and it could be facing a liquidity crunch. SKS Microfinance has so far not responded to any to specific questions we mailed them.
The fact that Citigroup Global Markets which was one of lead managers for SKS Microfinance’ IPO came out with a report on Thursday asking investors to sell the stock could have further dampened investor sentiment.
In early morning trade today, SKS Microfinance was trading up by 1% at Rs 608 on the National Stock Exchange at 10:00 AM.
Update – 4:00 PM 21/12/2010 – At the close of today’s trade SKS Microfinance had made a new low and touched Rs 559 before bouncing back on heavy buying by Institutional Investors and eventually closed at Rs 612.15 on the Bombay Stock Exchange.