Troubled firm SKS Microfinance is finally on its way to getting more capital. The company’s board has approved a sale of shares to institutional investors through the so-called QIP process. The shares issue is slated to be worth Rs900 crore. What’s more, the SKS board has also increased the authorized share capital to Rs1,350 crore from Rs950 crore. SKS Microfinance and other microlenders were battered last year after an Andhra law severely cut into their ability to recover payments from borrowers. Banks in turn, stopped lending to MFIs. Since then, SKS has reduced the significance of its Andhra portfolio, which now accounts for barely 20% of its loan book compared to around 26% at the time the law was passed. Shares of the firm climbed 1.41% on the BSE to finish at 201 even as overall markets remained flat.
In other news, Pakistan has removed a hurdle in the way of trade with India. On Wednesday its cabinet granted India so-called Most Favoured Nation status. The issue had long been an obstacle in the way of trade talks between the two countries.
And finally, Indian markets ended Wednesday flat after a volatile trading session. The Sensex dipped 16 points to close at 17,465. And the Nifty nudged up half a point to 5,258.