Spandana Sphoorty Financial, a microfinance company, has its IPO opening today for subscription. The company plans to raise Rs 400 crore by issuing fresh equity shares to increase the capital base and for general corporate purpose. The promoters will also sell a portion of existing shares worth up to Rs 801 crore.
Incorporated in 2003, Spandana Sphoorty Financial Ltd is a rural area focused NBFC-Microfinance Institution. Mrs Reddy is a founder, MD and promoter of the company. It is engaged in offering small-ticket unsecured loans to help the women in the low-income bracket in rural and urban areas. The company provides income generation loans, business loans and loans against gold jewellery.
Spandana has a presence across 15 states in India with 4,045 employees and 694 branch network. By offering the loan products to low-income households, the company is strengthening the socio-economic condition and improving their livelihoods.
The company has started working under CDR mechanism (Corporate Debt Restructuring) of the RBI to revive the business and restructure the borrowings in 2010. And, exited successfully in March 2017 with the help of Kangchenjunga Ltd and Kedaara AIF-1.
Before the 2010 crisis, the company had Rs 4,500 crore loan portfolio. The company started recovering and made the first profit in the year 2013-14. As of September 2018, Spandana had Rs 2,244 crore loan portfolio.
The net proceeds of the fresh Issue are proposed to be utilised for:1. Augmenting the company's capital base and 2. General corporate purposes
Competitive Strengths
1. Seasoned business model 2. Large employee base for a high degree of client engagement
3. Diversified business operations in the undertapped rural segment 4. Low NPAs
Summary of financial Information
| Metrics |
For the year/period ended (in Rs. 10 Lakhs) |
| |
31-Mar-19 |
31-Mar-18 |
31-Mar-17 |
31-Mar-16 |
31-Mar-15 |
| Total Assets |
48,980.37 |
37,642.47 |
19,286.22 |
20,998.95 |
23,524.69 |
| Total Revenue |
10,362.81 |
5,872.74 |
3,770.64 |
3,438.62 |
3,019.71 |
| Profit After Tax |
3,087.48 |
1,879.71 |
4,434.14 |
2,432.35 |
1,050.99 |
Spandana Sphoorty Issue details
| Issue Open |
Aug 5, 2019 - Aug 7, 2019 |
| Issue Type |
Book Built Issue IPO |
| Issue Size |
14,046,056 Eq Shares of Rs 10
(aggregating up to Rs 1,200.94 Cr) |
| Fresh Issue |
4,689,331 Eq Shares of Rs 10
(aggregating up to Rs 400.00 Cr) |
| Offer for Sale |
9,356,725 Eq Shares of Rs 10
(aggregating up to Rs [.] Cr) |
| Face Value |
Rs 10 Per Equity Share |
| Issue Price |
Rs 853 - Rs 856 Per Equity Share |
| Market Lot |
17 Shares |
| Min Order Quantity |
17 Shares |
| Listing At |
BSE, NSE |
| Bid/Offer Opens On |
Aug 5, 2019 |
| Bid/Offer Closes On |
Aug 7, 2019 |
| Finalisation of Basis of Allotment |
Aug 14, 2019 |
| Initiation of Refunds |
Aug 14, 2019 |
| Credit of Shares to Demat Acct: |
Aug 16, 2019 |
| IPO Shares Listing Date: |
Aug 19, 2019 |
| Pre-Issue Share Holding |
81.21% |
| Post Issue Share Holding |
|
Offer Size Allocated
QIB Portion: 50% of the offer;
Retail Portion: 35% of the offer
NII Portion: 15% of the offer
Contact Spandana
Spandana Sphoorty Financial Ltd
Plot No: 31 & 32,
Ramky Selenium Towers, Tower A, Ground Floor,
Financial District, Nanakramguda,Hyderabad 500 032
Phone: +91 40 4812 6666
Email: secretarial@spandanaindia.com
Website: http://www.spandanaindia.com/