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.
Company Products
1. Abhilasha (JLG Loans)
2. Shree Loans
3. Loans Against Property (LAP)
4. Gold Loans (Keertana)
5. Phinix Loans
6. Interim Loans
Competitive Strengths
1. Seasoned business model
2. Large employee base for a high degree of client engagement
3. Focus on a highly under-served market
4. Geographically diversified business operations
Company Promoters:
Padmaja Gangireddy and Kangchenjunga Limited are the promoters of the company.
Company Financials:
Summary of financial Information (Restated)
Particulars 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
Objects of the Issue:
The Net Proceeds of the Fresh Issue are proposed to be utilised for:
1. Augmenting the capital base and
2. General corporate purposes
Spandana Sphoorty IPO 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 [.] 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
Spandana Sphoorty IPO Tentative Date / Timetable
Bid/Offer Opens On Aug 5, 2019
Bid/Offer Closes On Aug 7, 2019
Finalization of Basis of Allotment Aug 14, 2019
Initiation of Refunds Aug 14, 2019
The credit of Shares to Demat Acct: Aug 16, 2019
IPO Shares Listing Date: Aug 19, 2019
Spandana Sphoorty IPO Promoter Holding
Pre Issue Share Holding 81.21%
Post Issue Share Holding
Company Contact Information
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/
Spandana Sphoorty IPO Registrar
Karvy Computershare Private Limited
Karvy Registry House, 8-2-596, St. No. 1,
Banjara Hills, Hyderabad - 500 034
Andhra Pradesh, India
Phone: +91-40-23312454
Email: spandana.ipo@karvy.com
Website: https://karisma.karvy.com/
Spandana Sphoorty IPO Lead Manager(s)
Axis Capital Limited
ICICI Securities Limited
IIFL Holdings Limited
IndusInd Bank Limited
JM Financial Consultants Private Limited
Yes Securities (India) Limited
Conclusion / Investment Strategy
SSFL is the most efficient micro-finance company with a cost to income ratio of 25% and the industry-leading opex ratio of 4.6% for FY19. Its AUM posted 85% CAGR and PBT posted 222% CAGR in last two years with just 0.01% NPAs as on 31.03.19. SSFL offer appears cheap against its close peer CAGL. Considering these, investors may consider investment for the long term.
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