Spandana Sphoorty IPO

Spandana Sphoorty Financial Limited IPO

What does the company do?

Spandana Sphoorty Financial Ltd is a rural-focused NBFC-MFI (Micro Finance Institution) with a geographically diversified presence in India. Spandana has a presence across 15 states in India with 4,045 employees and 694 branch network. They offer income generation loans under the joint liability group model, predominantly to women from low-income households in Rural Areas.  As of 31 March 2018, it was the fourth-largest NBFC-MFI and the sixth-largest amongst NBFC-MFIs and SFBs in India, in terms of AUM.

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.

Competitive Strength of the company is

  • Seasoned business model
  • Large employee base for a high degree of client engagement
  • Focus on a highly under-served market
  • Geographically diversified business operations

An object of the Issue

  • Augmenting the capital base and 
  • General corporate purposes
  • Issue expenses

Promoters of the Company

  • PadmajaGangireddy
  • Deepak Calian Vaidya

Lead Manager of the Company

Registrar of the Company

  • Karvy Computershare Private Limited

Company Financial Performance (in INR crore)

IPO Issue Details

  • Issue Type: Book Built Issue IPO
  • Issue Size: 1200.94Cr.
  • Fresh Issue: INR400crore
  • Offer for Sale: 9,356,725 shares (INR798.13 – 800.94 Crore)
  • Face Value: INR10 per share
  • Listing At: BSE, NSE

Allotment Process 

You can contact your share broker and ask them for your allotment.

Listing Performance

  • Finalization of Basis of Allotment: 14 August 2019
  • Initiation of refunds: 14 August 2019
  • Transfer of shares to Demat accounts: 16 August 2019
  • Listing Date: 19 August 2019

Valuations

  • Earnings Per Share (EPS): INR 53.35
  • Price/Earnings (PE ratio) : 15.99 – 16.04
  • Return on Net Worth (RONW): 16.51%
  • Net Asset Value (NAV): INR 316.84 per share

                                                                                                                    Happy Investing!

                                                                       

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