Mumbai, Oct. 4: SKS Microfinance Ltd (SKSMF) — the first microfinance company to list on the bourses — today sacked its managing director and chief executive officer (CEO) Suresh Gurumani but gave no reasons for the precipitate move.

Gurumani will be replaced by M.R. Rao, deputy CEO of the company. He will have a three-year tenure at SKS Microfinance.

On the Bombay Stock Exchange, the SKS Microfinance stock plunged 6 per cent, or Rs 78.70, to Rs 1,276.50 after hitting an intra-day low of Rs 1,235.

At a conference call with analysts on its first-quarter results, Vikram Akula, founder of the microfinance institution, said he would not comment on the termination beyond the statement issued by the company.

Earlier SKS Microfinance told the stock exchanges that at a meeting held today, the board of directors passed a resolution terminating the appointment of Gurumani as managing director & CEO and had “withdrawn all powers and authorities granted to him or otherwise enjoyed by him in the company as managing director & CEO of the company with immediate effect”.

The initial public offering (IPO) of SKS Microfinance had opened on July 28 and closed on August 2 after being oversubscribed 13.6 times.

The IPO of 1.68 crore shares came in the price band of Rs 850 to Rs 985 per share. The company had a stellar debut with its share ending with a premium of nearly 10 per cent.

Founded by former McKinsey & Co management consultant Akula, the company provides small loans exclusively to poor women predominantly located in rural areas. These loans are provided to such members essentially for use in their small businesses or other income generating activities and the company is the largest microfinance institution in India.

Prior to the public offer, senior management of the company, including Akula, Gurumani and Rao, had sold their shares.

Recently, the company declared its first-quarter numbers. Its net profit for the quarter ended June 30 rose 265 per cent to Rs 67 crore from Rs 18 crore in the previous year.

On the other hand, gross income rose to Rs 314 crore from Rs 172 crore last year.