Shares of SKS Microfinance bounced back on Friday after four sessions of consecutive decline, surging by 10% in morning trade on the Bombay Stock Exchange after the company said it has sufficient liquidity for disbursals and bank repayments.
Though the scrip opened on a poor note, it soon rallied into positive terrain after SKS chairman Vikram Akula said the company is well-capitalised and was not as badly impacted by the Andhra Pradesh ordinance reining in MFIs as suggested by some quarters. Boosted by the news, the stock jumped by 9.99% to touch an early high of R704.75 on the BSE.
SKS Microfinance closed the day with a gain of 5.47%.
On Thursday, the company tumbled by 20% to hit the lower limit of R639.45. In the last four trading sessions, the scrip has witnessed a whopping 31% decline.
Akula had said though the Andhra Pradesh ordinance has some impact on MFIs, his company is well-oiled on the back of a strong balance sheet and capital adequacy ratio.