Illustration: Ajay Mohanty
Hyderabad-based NBFC micro finance (MFI) company Spandana Sphoorty Financial Limited proposes to launch its initial public offering (IPO) of equity shares on August 5, 2019. The offer includes a fresh issue of up to Rs 400 crore and offer for sale of 9.36 million shares worth about Rs 800 crore by its investor shareholders.
The company proposes to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements and other corporate purposes. The offer comes with a price band of Rs 853 to Rs 856 per equity share.
Spandana is the second Hyderabad-based micro finance company to tap the capital markets
after a gap of nine years.
It may be recalled that SKS Micro Finance (which later changed its name to Bharat Financial Inclusion) raised little over Rs 1,600 crore through an IPO
in the year 2010. However, SKS and a host of other MFIs having overwhelming lending exposure in the undivided Andhra Pradesh have subsequently witnessed a huge financial turmoil after the then state government banned MFI operations.
Spandana was the second largest MFI in the country at that time. Currently it has a geographically diversified presence in rural India.