After an initial spike on the back of exit of the company’s founder and executive chairman Vikram Akula, shares of SKS Microfinance reversed the early morning gains and settled on a weaker note on the bourses day.
The stock rose by as much as 5% to hit its highest permissible limit on the BSE in the early morning session, but ended 1.9% down at R113.8.
During the day, the stock touched a high of R121.8 and a low of R111.3.
The country’s only listed micro finance institution said on Wednesday that Akula was resigning as the company’s executive chairman and continue as a “consultant” till March 2012 to “assist with the transition” process.
SKS did did not give any reason for the resignation, which has come in the midst of huge losses suffered by the company and reports of differences between Akula and other board members. The company said that P H Ravikumar was being appointed as its interim non-executive chairman.
The company said it was not offering any severance package to Akula. However, it has signed certain non-compete and confidentiality agreements with Akula, who founded the company in December 1997 and made history when SKS IPO was overbought 14 times and was listed with 11% premium over issue price of R985 in July 2010.