Spandana Sphoorty Financial Limited, a non-banking financial company (NBFC) in India, has announced plans to launch a rights issue of up to Rs 400 crore. The rights issue will be offered at a significant discount to the current market price of the company’s shares. According to reports, the rights issue will be offered at a price of Rs 140-150 per share, which is a steep discount of around 30-40% to the current market price of the company’s shares. The company’s shares were trading at around Rs 240-250 per share on the BSE and NSE before the announcement. The rights issue is expected to help the company raise capital to meet its business growth plans and strengthen its balance sheet. The company plans to use the proceeds from the rights issue to fund its lending activities, pay off debts, and meet other business expenses. The rights issue will be open to existing shareholders of the company, who will be eligible to subscribe to the new shares in proportion to their existing shareholding. The issue is expected to be launched in the coming weeks and will be open for subscription for a period of around 2-3 weeks. Spandana Sphoorty Financial Limited is a leading microfinance institution in India, providing financial services to low-income households and small businesses. The company has a strong presence in the southern states of India and has been growing rapidly in recent years. The company’s decision to launch a rights issue at a steep discount is likely to be a positive move for the company, as it will help to raise capital at a lower cost and reduce the company’s debt burden. However, the discount may also be a negative for existing shareholders, who may see the value of their holdings diluted as a result of the issue. Overall, the rights issue is expected to be a significant development for Spandana Sphoorty Financial Limited and its shareholders, and will be closely watched by investors and analysts in the coming weeks.

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Spandana Sphoorty Financial Limited, a non-banking financial company (NBFC) in India, has announced plans to launch a rights issue of up to Rs 400 crore. The rights issue will be offered at a significant discount to the current market price of the company's shares. According to reports, the rights issue will be offered at a price of Rs 140-150 per share, which is a steep discount of around 30-40% to the current market price of the company's shares. The company's shares were trading at around Rs 240-250 per share on the BSE and NSE before the announcement. The rights issue is expected to help the company raise capital to meet its business growth plans and strengthen its balance sheet. The company plans to use the proceeds from the rights issue to fund its lending activities, pay off debts, and meet other business expenses. The rights issue will be open to existing shareholders of the company, who will be eligible to subscribe to the new shares in proportion to their existing shareholding. The issue is expected to be launched in the coming weeks and will be open for subscription for a period of around 2-3 weeks. Spandana Sphoorty Financial Limited is a leading microfinance institution in India, providing financial services to low-income households and small businesses. The company has a strong presence in the southern states of India and has been growing rapidly in recent years. The company's decision to launch a rights issue at a steep discount is likely to be a positive move for the company, as it will help to raise capital at a lower cost and reduce the company's debt burden. However, the discount may also be a negative for existing shareholders, who may see the value of their holdings diluted as a result of the issue. Overall, the rights issue is expected to be a significant development for Spandana Sphoorty Financial Limited and its shareholders, and will be closely watched by investors and analysts in the coming weeks.


Spandana Sphoorty Financial Fixes Rights Issue Price at Rs 230 Per Share, Aims to Raise Rs 400 Crore

Spandana Sphoorty Financial has fixed the price of its proposed rights issue at Rs 230 per share, which is nearly 25% lower than the market price. The microfinance company will launch the Rs 400-crore rights issue on August 1, with shareholders getting 10 rights equity shares for every 41 shares held. This move is part of the company’s plan to raise up to Rs 750 crore in equity in FY26, as it faces severe stress in asset quality and aims to improve its financial performance.

The decision by Spandana Sphoorty Financial to fix the price of its proposed rights issue at Rs 230 per share marks a significant step in the company’s efforts to raise capital and address its current financial challenges. As of Friday, the stock closed at 305.95 apiece, indicating that the rights issue price is nearly 25% lower than the market price. This move is expected to attract investors and help the company achieve its goal of raising Rs 400 crore. The rights issue, which will be launched on August 1, will allow shareholders to purchase 10 rights equity shares for every 41 shares held, with the face value of the shares being Rs 10. If the rights issue is fully subscribed, the company’s equity share will expand by 89 million to 71 million. The issue will remain open until August 11, with the board having the right to extend the issue closing date up to 30 days.

Background and Rationale

Spandana Sphoorty Financial, a leading microfinance company, has been facing severe stress in asset quality, which has impacted its financial performance. The company suffered a significant annual net loss of Rs 1,035 crore in FY25, while its gross bad loan ratio jumped to 5.63% of the total portfolio. To address these challenges and improve its financial health, the company has planned to raise up to Rs 750 crore in equity in FY26. The proposed rights issue is a crucial part of this plan, as it will help the company raise much-needed capital to support its operations and growth.

Key Highlights of the Rights Issue

Some of the key highlights of the rights issue include:
* The rights issue price has been fixed at Rs 230 per share, which is nearly 25% lower than the market price.
* Shareholders will get 10 rights equity shares for every 41 shares held.
* The face value of the shares is Rs 10.
* The issue will be launched on August 1 and will remain open until August 11.
* The board has the right to extend the issue closing date up to 30 days.
* The company aims to raise Rs 400 crore through the rights issue.
* The equity share of the company will expand by 89 million to 71 million if the rights issue is fully subscribed.

Expected Participation from Principal Promoter

According to interim chief executive Ashish Damani, principal promoter Kedaara Capital is expected to participate in the rights issue. Kedaara Capital holds 48% of the company’s shares and is likely to play a significant role in helping the company achieve its fundraising goals. The participation of the principal promoter is expected to boost investor confidence and support the company’s efforts to raise capital.

Challenges Facing the Microfinance Industry

The microfinance industry, including Spandana Sphoorty Financial, has been facing significant challenges in recent times. The industry has been impacted by rising bad loans, increasing competition, and regulatory challenges. To address these challenges, microfinance companies are exploring various options, including raising capital through rights issues, to improve their financial performance and support their growth.

Conclusion

In conclusion, the decision by Spandana Sphoorty Financial to fix the price of its proposed rights issue at Rs 230 per share is a significant step in the company’s efforts to raise capital and address its current financial challenges. The company’s plan to raise up to Rs 750 crore in equity in FY26 is expected to help it improve its financial performance and support its growth. With the participation of the principal promoter and the support of investors, the company is likely to achieve its fundraising goals and overcome the challenges facing the microfinance industry.

Keywords: Spandana Sphoorty Financial, rights issue, microfinance company, asset quality, financial performance, fundraising, Kedaara Capital, principal promoter, investor confidence, regulatory challenges, microfinance industry, bad loans, competition, growth.

Hashtags: #SpandanaSphoortyFinancial #RightsIssue #MicrofinanceCompany #AssetQuality #FinancialPerformance #Fundraising #KedaaraCapital #PrincipalPromoter #InvestorConfidence #RegulatoryChallenges #MicrofinanceIndustry #BadLoans #Competition #Growth.



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