Hyderabad: SKS Microfinance Ltd, India’s only listed microlender, on Tuesday informed stock exchanges that its board, at a meeting held on 19 May, had decided to sell shares to institutional investors to raise 400 crore.

The company has set the floor price at 235.06 per equity share as per the pricing formula under Securities and Exchange Board of India regulations.

SKS in February said it plans to raise 400 crore with a maximum equity dilution of 20%. The company said it will help fund growth besides reinforcing the capital position of SKS Microfinance.

Shares of SKS were trading at 252.55, up 4.88%, to 252.55 on the BSE at 9.45am, while the benchmark Sensex gained 1% to 24,363.05 points.