Comments on: SKS Microfinance shares rise

By: RajanAlexander

RajanAlexander — Thu, 25 Nov 2010 11:13:36 +0000

SKS Stock started rising after JP Morgan gave a buy signal at Rs 700. Unfortunately JP Morgan did not disclose that they had holdings in SKS. The share price looks manipulated.

MICROCAPITAL

“When SKS Microfinance launched India’s first initial public offering (IPO) on July 28, 2010, the total share issue received bids for 13.55 times the overall shares on offer, with the institutional share offer oversubscribed by 20.3 times. The share bids were at the high end of the INR 850 to 985 (USD 18.42 to 20.04) price range. SKS Microfinance allocated 3.02 million shares at INR 985 (USD 20.04) per share to 36 anchor investors, including: ICICI Prudential, an Indian life insurance company; BNP Paribas, a French global banking group; Nomura, a Japanese global investment bank; Reliance Capital, an Indian non-banking financial company; and three U.S.-based financial institutions, JP MORGAN, Morgan Stanley and Goldman Sachs.”

By: Bovespa

Bovespa — Mon, 22 Nov 2010 18:49:56 +0000

Not alone SKS but the entire MFI is on a verge of collapse.It would be adviseable for banks to evaluate their own exposure to this industry.Andhra Pradesh micro borrowers are defaulting on interest and repayments for more than a month now and soon this malaise is going to spread into neighbouring states.Banks may have to report an increase in NPAs.Can this be India’s subprime?
Unfortunately this industry has come to a grinding halt.
SKS is becoming a high risk high return stock.

By: RajanAlexander

RajanAlexander — Mon, 22 Nov 2010 16:02:48 +0000

SKS Micro-finance has become a Proxy, Hammer it, Hammer the Whole Industry

Being highly volatile as demonstrated by last Friday’s wild swing of Rs 102 together with as much as 70 million in market depth that is rapidly growing, makes the SKS counter a trader’s delight. It is probably on its way to be the number one counter for equity traders in the country. This can’t be good news for the micro-finance industry, as this puts both SKS and Vikram Akula under constant media glare, becoming the proxy for continued debate on the social relevance of the industry. Hammer SKS, hammer the whole industry. We understand many in the micro-finance industry are actually appalled and squirming at this turn of events.