In a poll conducted by India’s leading Microfinance News portal – Readers of India Microfinance Business News (IMBN) have predicted that SKS Microfinance could close at around Rs 1100 on it’s first day of trading.This will represent a gain of about 20% on the issue price of Rs 935 for retail investors.
The poll conducted among leading Microfinance Practitioners and Stock Analysts has come up with some suprising and mixed results.A total of 241 respondents had chosen to participate in the poll which closed on the night of Friday the 13th.
When asked the question ” What will be the closing price of SKS Microfinance’s Stock on it’s first day of trading ?”, 24% of respondents voted that they felt that SKS Microfinance’s shares will close in the the range of Rs 1000 – Rs 1100 while another 23% voted that SKS Microfinance will close in the range between Rs 1100 – Rs 1200 on it’s first trading day. Hence the bulk of the voters constituting 47 % feel that SKS will close at a price which is somewhere in between Rs 1100 Rs 1300 on it’s listing day.The complete figures of the Poll are given below.
A small but significant percent comprising 19% of the voters felt that SKS Microfinance could list above Rs 1500. This may seem far fetched at first glance but considering the run up in other listed NBFC stocks it may not seem so unlikely.
Some of the bigger NBFC stocks like Mahindra and Mahindra Financial, Citi Union finance and other NBFC’s have appreciated by 80% to 120% over the last six months on the news that some of them are strong contendors for the new banking licenses to be issued by the Reserve Bank of India.
Considering the strength of SKS Microfinance’s Balance Sheet and the pedigree of it’s investors, many analysts strongly feel that SKS Microfinance could be one of the few NBFC’s that may be issued Banking Licenses by the RBI.
It must also be mentioned that there was a strong appetite among FII’s for this stock and it was oversubscribed 13.55 times by foreign and domestic institutional investors. Many FII’s who were alloted a small number of SKS’s shares are expected to buy from the open market on monday.
The closing price of a stock on it’s first day of trading represents the point at which both buyers and sellers are willing to sleep over and hence is a significant determinant of the future share price of the stock.
Disclaimer:This poll is not scientific and reflects the opinions of only those internet users who have chosen to participate. India Microfinance does not promote the use of this information for any factual purposes and can not be deemed responsible for any inaccuracies in the results.