India: SKS Trust Sells 7.6% Stake in SKS Microfinance
India, May, 21 2014 -
SKS Trusts Advisors, which was so far the largest shareholder in the microlending company SKS Microfinance, has cut down its stake from 12.47 to 4.88 per cent, selling shares in a block deal.
“We believe it is a good time to rationalise and diversify our portfolio and make investments in and incubate exciting new opportunities which further financial inclusion and are consistent with the trust’s objectives,” said Dr Bikshmaiah Gujja, chairman and managing director, SKS Trust Advisors.
At 12.5 per cent share, SKS Trust had held 13,529,958 number of equity shares. Earlier this month, SKS Mutual Benefit Trusts had also sought to de-promoterise itself saying, amongst other things, they “lack the ability or right to exercise any control over the company and do not have any influence over SKS’ decision making.”
Even before this, last year towards September, the Trust had sought a position for Vikram Akula on the board of the company. Saying “the trusts would like to help the company achieve the goal of promoting financial inclusion while also enhancing long-term shareholder value.” Later, SKS turned down its requests.
There are five SKS Mutual Benefit Trusts — in Medak, Sangareddy, Jogipet, Narayankhed and Sadasivpet — whose beneficiaries are self-help groups. The sole trustee is SKS Trust Advisors.