Spandana Sphoorty denies stake sale to YES Bank

Spandana Sphoorty denies stake sale to YES Bank

Spandana Sphoorty Denies Stake Sale Rumors to YES Bank

Hyderabad-based financial firm Spandana Sphoorty has dismissed speculations about its major shareholder, Kedaara Capital, engaging in discussions with YES Bank regarding a stake sale. The company stated that it’s board and corporate promoter remain dedicated to implementing the Vision 2025 business plan, which was approved by the directors in July of the previous year.

In an official statement to the stock exchanges, Spandana emphasized its commitment to complying with all relevant laws, including disclosure and other obligations as they arise.

Approximately 18 months ago, Kedaara Capital abandoned a similar plan due to allegations made by Spandana founder Padmaja Gangireddy, who claimed that the company was being sold to Axis Bank.

Spandana clarified in a filing with the BSE, “The company has consistently disclosed all material information and announcements that could impact its operations and performance, as well as fulfilling necessary disclosure requirements in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, within the specified timeframe.”

The clarification from Spandana follows a report by Economic Times suggesting that private equity investor Kedaara had revived its intentions to sell the company, this time to YES Bank.

Spandana Sphoorty Financial experienced an impressive 268% surge in consolidated net profit for the March quarter, reaching ₹105.55 crore. The company specializing in rural loans reported a total income of ₹533 crore, marking a 42% increase compared to the previous quarter.

As of March 31, 2023, the company’s overall assets under management stood at ₹8,511 crore, compared to ₹6,581 crore in the corresponding period the previous year.

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During Q4 FY2023, the lender showcased significant improvement, with the gross non-performing assets ratio decreasing to 2.07% from 18.7% in the same period of the previous year.

Following the denial of the M&A deal with YES Bank, Spandana’s shares experienced a 4.36% decline on Thursday afternoon.

About Spandana Sphoorty:

Spandana Sphoorty Financial Limited (SSFL) is a non-banking financial company (NBFC) specializing in microfinance services. SSFL provides micro-loans to individuals who face challenges in accessing credit through traditional financial channels.

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