Satin Creditcare Network stock hits 52-week high; board to consider raising funds

Satin Creditcare Network shares jumped 5.3 percent intraday on November 16. The microfinance company is planning to meet to consider raising funds.

Satin Creditcare Network’s board members will meet on November 20, to “consider the fund raising proposal by way of issuance of listed/unlisted, secured/unsecured, non-convertible debentures on private placement basis”, according to a regulatory filing.

The shares hit a fresh 52-week high at Rs 274.20 apiece. As of 11.00 am, shares were trading higher by 1.92 percent on the NSE at Rs 265.7 per share.

Last month, the board approved a fund-raise through the Qualified Institutional Placement (QIP) route. Satin Creditcare Network’s management gave the go-ahead to raise up to Rs 300 crore in one or more tranches and/or one or more issuances, simultaneously or otherwise, including by way of private placement(s), qualified institutions placement(s) and/or any combination thereof or any other method as may be permitted.

Satin Creditcare is a microfinance lender with a presence in 24 state and union territories across 95,000 villages.

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Shares of the microfinance lender have surged more than 62 percent this year, with most of the gains clocked over the past six months. In comparison, the benchmark index Nifty 50 has given investors returns of 8.15 percent over the same time-period.

The promoters have decreased holdings from 41.70 percent in the June quarter to 39.98 percent in September quarter. FIIs and DIIs hold 6.9 percent and 4 percent of the shares, respectively. The public is the largest shareholder, with holdings of 48.6 percent.

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