Even while the power tussle is on at SKS Microfinance, the investors in the company are wearing a tired look. With the inter-personal issues between Vikram Akula, founder and Suresh Gurumani, sacked CEO, investors are sweating over a fallen market cap of Rs 312 crore from October 4, 2010 till October 13, 2010.
The market cap was Rs 9190.61 crore on the day Gurumani was sacked which fell to Rs 8,878.86 crore on October 13. The net loss is about Rs 311.75 crore, which is giving jitters to the investors. Market analysts also point out that there a few business risks such as socio-political risks, regulatory and legal, which are in fact posing a lot of concern for its future business plans in SKS.
An analyst said that a sudden change in the management will be detrimental to the growth as the new CEO is less exposed to the frills in the industry. However, there are reports that Gurumani is likely to sue SKS, the personal tussle is expected to bring the market cap further down, an analyst noted.
SKS chief financial officer D Dilli Raj had earlier said the termination was ?not an issue related to financial irregularities.? It is learnt Akula would be reinstated as executive chairman of the company with effect from November 1. He had relinquished the position and taken on the role of non-executive chairman after Gurumani joined the company as CEO in November 2008.
SKS Microfinance is the first microfinance company to have gone public. It had raised Rs 1,653 crore through an IPO in July. As of March 31, SKS had 6.78 million women borrowers and total disbursements of more than Rs 14,000 crore.
For the quarter ended June 2010, the company posted revenues of Rs 305.56 crore and a net profit of Rs 66.70 crore.