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Economic Times
19 hours ago
- Business
- Economic Times
Spandana Sphoorty to launch Rs 400 crore rights issue at steep discount
Spandana Sphoorty Financial has fixed the price of its proposed rights issue at Rs 230 per share, nearly 25% lower than the market price. ADVERTISEMENT The stock closed Friday at 305.95 apiece. The microfinance company will launch the Rs 400-crore rights issue on August 1. Shareholders will get 10 rights equity shares for every 41 shares held. The face value of the shares is Rs 10. Its equity share will expand by 89 million to 71 million, if the rights issue is subscribed issue will remain open until August 11. The board will have the right to extend the issue closing date up to 30 days, the company said in a regulatory is part of the microfinance company's plan to raise up to Rs 750 crore in equity in FY26. ADVERTISEMENT Spandana is facing severe stress in asset quality, as do other microfinance lenders. It suffered a Rs 1,035-crore annual net loss in FY25 while its gross bad loan ratio jumped to 5.63% of the total chief executive Ashish Damani had earlier said that principal promoter Kedaara Capital is expected to participate in the rights issue. ADVERTISEMENT Kedaara holds 48% in the company. (You can now subscribe to our ETMarkets WhatsApp channel)


Time of India
19 hours ago
- Business
- Time of India
Spandana Sphoorty to launch Rs 400 crore rights issue at steep discount
Spandana Sphoorty Financial has fixed the price of its proposed rights issue at Rs 230 per share, nearly 25% lower than the market price. The stock closed Friday at 305.95 apiece. Explore courses from Top Institutes in Select a Course Category The microfinance company will launch the Rs 400-crore rights issue on August 1. Shareholders will get 10 rights equity shares for every 41 shares held. The face value of the shares is Rs 10. Its equity share will expand by 89 million to 71 million, if the rights issue is subscribed fully. The issue will remain open until August 11. The board will have the right to extend the issue closing date up to 30 days, the company said in a regulatory filing. Live Events This is part of the microfinance company's plan to raise up to Rs 750 crore in equity in FY26. Spandana is facing severe stress in asset quality, as do other microfinance lenders. It suffered a Rs 1,035-crore annual net loss in FY25 while its gross bad loan ratio jumped to 5.63% of the total portfolio. Interim chief executive Ashish Damani had earlier said that principal promoter Kedaara Capital is expected to participate in the rights issue. Kedaara holds 48% in the company.


Time of India
4 days ago
- Business
- Time of India
Spandana Sphoorty to raise Rs 400 crore via rights issue for FY26 plans
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Microfinance company Spandana Sphoorty Financial is planning to raise up to Rs 400 crore from existing shareholders through rights issue of shares. The company board approved the plan board will meet again on Friday to fix the price of the issue and other related matters such as related payment mechanism, rights entitlement ratio, the record date and timing of the issue, Spandana said after Tuesday's board meeting in regulatory filings to the stock rights issue is a part of the microfinance company's plan to raise up to Rs 750 crore in equity in FY26.A board committee was earlier formed to oversee the capital raising exercise. Interim chief executive Ashish Damani had earlier said that the promoter Kedaara Capital is expected to participate in the rights Sphoorty suffered a Rs 1035 crore annual net loss in FY25 while its gross bad loan ratio jumped to 5.63% of the total portfolio. It faced another jolt when chief executive Shalabh Saxena abruptly stepped down in April amid suspicion of unreported frauds at the branch level and cash balance company however denied all the allegations.


Economic Times
18-06-2025
- Business
- Economic Times
Spandana Sphoorty Financial plans Rs 750-crore capital raise with Kedaara Capital's equity infusion
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Kolkata: Microfinance lender 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 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 company didn't respond to ET's queries until the publication of this 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 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 share price plunged 65% in the past one year to Rs 267 from Rs 795, as investors lost interest in 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 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.


Time of India
18-06-2025
- Business
- Time of India
Spandana Sphoorty Financial plans Rs 750-crore capital raise with Kedaara Capital's equity infusion
Kolkata: Microfinance lender 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top Internet Deals for Your Home – 2025 Edition Search7 Learn More Undo 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. Live Events 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.