As per the public notice released on March 14, 2017, Spandana Sphoorty is in talks to sell over 26% stake to Kedaara Capital Investment Managers Ltd. For the proposed deal the company has also received in-principle approval from the central bank.
According to Padmaja Reddy, founder & MD of Spandana Sphoorty, the firm is looking at raising equity capital. The approvals from lenders have also been received for CDR exit. The firm is looking to close the deal before March end.
After the completion of stake sale, the company will have net funds amounting to Rs 700 crore & debt of Rs 1000 crore as on March 31, 2017. Spandana Sphoorty Financial Limited is a public company incorporated under the provisions of the Companies Act,1956 on March, 2003.
The Company is engaged in the business of micro finance, providing small ticket unsecured loans to women of low-income households in rural and urban areas. The duration of these loans is 1 to 2 years.