On the back of the microfinance crisis in Andhra Pradesh and attacks on the offices of SKS Microfinance , the share price of the company has dropped by around 100 rupees and is currently trading at Rs 1125.00 down by about 8%.
The stock which opened at Rs 1220.05 made a high of Rs 1225.00 before dropping to a new 2 month low of Rs 1125. The drop in SKS Microfinance’s share price is being attributed to the growing crisis in Andhra Pradesh where political parties have begun mobilizing MFI clients to default on their loans and the boardroom drama involving the termination of it’s CEO Suresh Gurumani.
Meanwhile, the Communist Party of India has vowed to intensify it’s agitation against MFI’s in the state in response to the suicides committed by MFI clients.
Yesterday activists of CPI and CPI(M) vandalized several offices of SKS Microfinance and threatened the field staff of SKS Microfinance from collecting repayments. Some SKS field staff were also manhandled when they had gone for their weekly collections in the neighboring villages.
As per the documents filed with SEBI by SKS Microfinance during it’s IPO – more than 70% of the company’s outstanding credit is concentrated in five states with the highest exposure of 29% being in Andhra Pradesh.