Spandana's top ten investors to buy into Rs 400-crore rights issue
institutional investors
of
Spandana Sphoorty Financial
have confirmed their participation in the company's ₹400-crore
rights issue
of shares, which will open for subscription on August 1, Spandana interim chief executive Ashish Damani told ET.
The list of participating investors includes Kedaara Capital-the promoter of the rural-focused
non-banking financial company
and a
microfinance
lender with a holding of 48.13%.
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Damani also said that Kedaara is likely to remain invested in the company for a longer period though it has a scheduled exit in September next year.
"The idea behind the rights issue is to bring the confidence of stakeholders back," Damani told ET in an exclusive interaction. "The top 10-11 investors have confirmed their participation in the rights issue."
The rights issue is structured in such a way that Spandana will receive 50% payment immediately and it will raise the balance amount in the next 24 months.
The company, which suffered a net loss of ₹1,035 crore in FY25, is otherwise adequately capitalized, with a capital to risk adjusted ratio of 37% at the end of March. Spandana's gross non-performing assets ratio stood at 4.85% at the end of March. Its assets under management shrank by 43% year-on-year to ₹6,819 crore on account of slower loan disbursal and writing off more than ₹1,500 crore of bad loans.
On Kedaara's scheduled exit in 2026, Damani said there is no compulsion for them to exit.
"This can be best answered by Kedaara. However, as far as I understand, they don't necessarily need to exit," Damani said, adding that Kedaara has the right to invest more than its pro-rata holding if some investors do not subscribe to the rights issue.
The right shares will be offered at a steep discount to make it attractive, given that the microfinance sector is reeling under asset quality stress. The issue is priced at ₹230 per share over a face value of ₹10 each.
On Wednesday, Spandana's shares closed at ₹271.85 on the BSE. They were at ₹305.95 on July 18, the day the rights issue price was announced.
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