India: RBS Exits SKS Microfinance, Makes Quick Gain

Apr 2013
India, April, 26 2013 - Royal Bank of Scotland has sold its 4.62% stake in SKS Microfinance for about R63.50 Cr through the open market transactions.

The shares were sold for an average price of R127.01 per piece. RBS had bought the stake from Deutsche Securities in September last year at a price of R117.15 per share, thus netting a R10 gain. The stake buy was for R58.57 Cr.

A major buyer of the shares was Merrill Lynch Capital Markets Espana which bought 49.95 lac shares for R63.48 Cr.

Major stakeholders in the company are CLSA (Mauritiues) (8.77%), Sandstone Investment Partners (7.71%), Morgan Stanley (4.16%) and Vinod Khosla (3.92%) among others.

Prior to RBS’ stake buy in September, SKS Micro had raised R33.55 Cr divesting around 4.11% stake from one of its promoter’s subsidiary, Kumaon Investment Holdings.

RBS’ latest investments in the Indian capital markets include buying additional stakes in Brigade Enterprises (1.18%) and Diamond Power Infrastructure Ltd. (1.48%).

Among MFIs, IFC was proposing to invest in Ujjivan Financial Services and Equitas Micro Finance through the ECB route.

Varanasi based Utkarsh Micro Finance Pvt. Ltd. raised R20 Cr from its existing investors Aavishkaar Goodwell, IFC and Norwegian Microfinance Initiative.

Source : Deal Curry

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