Home / Markets / Stock Markets /  Spandana Sphoorty board to consider fundraising proposal via NCDs on 28 Sept

NBFC-MFI, Spandana Sphoorty Financial (Spandana) will consider fundraising through the issuance of non-convertible debentures (NCDs) on September 28. The company's board of directors is scheduled to meet this week. The shares will be in focus following fundraising development. Last week, the company allotted market-linked NCDs worth over 40.35 crore.

On Sunday, in its regulatory filing, Spandana said, "a meeting of the Management Committee of the Board of Directors of Spandana Sphoorty Financial is scheduled to be held on Wednesday, September 28, 2022, inter-alia to consider and approve, the issue and offer of Non-Convertible Debentures on a private placement basis."

Last week, on Friday, Spandana announced the allotment of 402 secured, senior, redeemable, transferable, listed, principal protected, market-linked, NCDs having a face value of 10 each aggregating to more than 40.35 crore. Under this issue, the interest rate is based on the performance of the Reference index of 10-year government security which is 6.54%. The tenure of the instrument is 18 months and nine days. The maturity date is April 1, 2024.

Spandana Sphoorty is a midcap stock trading under the 'T' group on BSE.

In Q1FY23, Spandana posted a net loss of 219.77 crore versus a net profit of 53.95 crore in Q1FY22. Revenue from operations stood at 250.28 crore in Q1FY23 against 434.17 crore in Q1FY22. Interest income is at around 243.96 crore against 396.71 crore in Q1FY22.

On BSE, Spandana shares closed at 564.60 apiece down by 4.81% on Friday. The company's market cap is around 4,005.68 crore.

Spandana’s journey began in 1998 and within five years, the company grew to become the largest Microfinance Institution (MFI) in India and the 6th largest MFI across the globe by 2003. At its peak, Spandana had 1,856 branches with a presence across 10 states and a workforce of over 13,500 employees.

Spandana is a rural-focused non-banking financial company and a microfinance lender (NBFC-MFI) with a geographically diversified presence in India. The company offers income-generating loans under the joint liability group (JLG) model, predominantly to women from low-income households in rural areas. In 2015, it transformed into an NBFC-MFI, licensed by the RBI.

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