SKS Microfinance Limited is planning to raise Rs 400 crore through QIP route in the next fiscal by diluting a maximum of 20 per cent stake.
The company's profit guidance, which is expected to be at Rs 125 crore in FY 2014-15, comes close on the heels of its recent announcement that there could be a positive surprise in its guided net profit of Rs 55-60 crore for FY'14, the company
said in a statement.
SKS said it needs to increase its non-Andhra Pradesh portfolio outstanding from Rs 2,364 crore as of December 2013 to Rs 3,800-4,000 crore by the end of FY'15.
"The proposed capital raise of up to Rs 400 crore will fund such growth opportunities besides reinforcing the capital position of SKS Microfinance Limited which had a net worth of Rs 432 crore and a capital adequacy of 28.1 per cent (21.6 per cent without taking RBI dispensation on provisioning for the Andhra Pradesh portfolio) as of December 31, 2013," it said.
The company's cash and bank balances stood at Rs 309 crore as of December 31, the statement added. As a part of its restructuring exercise, the company plans to move the two present C-level officials into strategic, mentoring roles but with complete accountability for business targets and new initiatives.
However, M R Rao will continue as the Managing Director and CEO of SKS Microfinance, while S Dilli Raj, presently Chief Financial Officer, will be promoted as the President of the company.
The two officials will spearhead new initiatives like cross sale, capital raise, creation of subsidiaries and building partnerships, SKS said.
P H Ravikumar, presently non-executive chairman interim, is redesignated as non-executive chairman.