Spandana Sphoorty Financial plans Rs 750-crore capital raise with Kedaara Capital's equity infusion
Spandana Sphoorty Financial
is exploring possibilities of
equity infusion
from principal shareholder
Kedaara Capital
through a
rights issue
of shares within the proposed Rs 750-crore
capital raise
.
Equity infusion from the promoter may boost the sagging confidence of other investors in the ailing microfinance company.
Fusion Finance
, for instance, saw more than a 50% jump in market capitalisation after its principal shareholder, Warburg Pincus, led a Rs 800-crore infusion via a rights issue.
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Spandana suffered a Rs 1035 crore annual net loss in FY25 while its gross bad loan ratio jumped to 5.63% of the total portfolio, reflecting the overall stress in the
microfinance sector
.
The company has formed a capital raising committee which is exploring the rights issue option, a person familiar with the matter said.
The company didn't respond to ET's queries until the publication of this report.
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However, interim chief executive Ashish Damani told analysts in a post-earning call last month that the rights issue would be done with the promoter participation.
"What we presently understand is, you know, they have confirmed their participation," he said.
Kedaara Capital holds 48.13% in Spandana through funds named Kedaara Capital Fund III LLP and Kangchenjunga Ltd. However, questions have been raised by a few analysts on its participation since it has a scheduled exit by September 2026. It has already received a one-year extension.
"Our equity raise plans are pretty much on track. We have received shareholder approval for capital raise during March for up to Rs 750 crore. The board committee has been formed to oversee this capital raise, including a possible rights issue in Q2 FY '26," Damani said during the call.
Spandana's share price plunged 65% in the past one year to Rs 267 from Rs 795, as investors lost interest in it.
Fusion Finance, another NBFC-MFI under immense stress, saw its share price falling to a one-year low of Rs 124 but it recovered to Rs 195.95 at the end of Wednesday after equity infusion through the rights issue, people tracking the sector said. Its one-year high was Rs 483.
The entire microfinance ecosystem has been reeling under stress over the past one year due to high customer overleveraging, collapsing of the joint liability model and rising staff attrition. The sector was sitting on a heap of Rs 61000 crore of gross non-performing assets (including the written-off loans) at the end of March.
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