SKS shows door to MD Gurumani

Oct 04, 2010 |

Oct. 4: India’s largest microfinance firm, SKS on Monday fired Mr. Suresh Gurumani, the managing director and CEO of the firm. In an announcement to the exchanges, the company said that the board of directors “passed a resolution terminating the appointment of Mr. Suresh Gurumani as MD and CEO” with immediate effect.

The release didn’t cite a reason for the action however. The deputy CEO of the firm, Mr M.R. Rao, has been appointed in his position. Mr. Vikram Akula, the chairman of SKS and Mr. Gurumani could not be reached for comments.

In its red herring prospectus, filed during the company’s recent initial public offering, it was mentioned that Mr. Gurumani’s tenure is till 2014. Mr. Rao would be holding his current charge for a period of three years, the company said in its filing. Markets did not take very kindly to the sudden change. The stock price of the company plunged sharply after the announcement, falling as much as 9 per cent from the previous closing price. It finally closed at `1,276.5, down 5.8 per cent from Friday’s closing price. In its filing to the exchange, the firm said that the board had also accepted the resignation of Mr. Ashish Lakhanpal from directorship of the company. Mr. Lakhanpal tendered his resignation so that that board composition complies with requirements of the listing agreement.

Mr Suresh Gurumani is a finance professional with over twenty years of experience.

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