Shares of SKS Microfinance closed up by more than 10 per cent at Rs 1,084 over its issue price of Rs 985 on its listing day on Monday on the NSE.A poll conducted on India Microfinance Business News had predicted that SKS Microfinance would close at around Rs 1100 on it’s first day of Trading. A total of 2.05 crore shares of SKS Microfinance were traded on both the BSE and the NSE and SKS Microfinance was the most actively traded security on the National Stock Exchange.
Mr SP Tulsian, an independent investment analyst said to CNBC-TV18 that he felt there was no reason to expect a big premium as the IPO was clearly overpriced. He also added that the fair value for the stock is Rs 1,050 and he would not buy the stock in four digit prices. Mr Tulsian also said the stock is trading at 20 times 2010-11 estimated earnings, while most non-banking financial services firms are trading at 13-15 times 2010-11 estimated earnings.
Brokerage house Mehta Equities has released a note saying that the recent IPO listings have been encouraging and in that context, we can expect SKS Microfinance to touch Rs 1200-1220 per share in the near term and expect Rs 1450 -1500 by March 2011.
SKS Microfinance Bulk Deals
According to NSE bulk deal data, Fundamental Investor Inc has picked up 62,000 shares at the price of Rs 1,126.77 a share.SKS Microfinance has more than 36 Anchor Investors who are subject to a 30 day lock-in period on their investment, as per SEBI Guidelines.