The micro finance company is also planning to extend the Agri Family Loan scheme-a product targeted at the small and marginal farmers, to states like Andhra Pradesh, Karnataka and Maharashtra in the first phase and expand it to the other states gradually over a period of time. The product has been in trial phase for two years in five districts covering Adilabad, Nizamabad in Andhra Pradesh and Nanded in Maharashtra.
Speaking to FE, G Padmaja Reddy, managing director of the company said, right now, Spandana is present in about nine states including Andhra Pradesh, Karnataka, Maharashtra, Rajasthan and Chhatisgarh and serves about 2.5 million customers.
The plan is to grow rapidly and enhance the branch network and client base. By 2011, the company is targeting to have 6 million borrowers with cumulative disbursements of Rs 20,000 crore.
She said, the company during the current fiscal is planning to roll out the Agri Family Loan which is primarily targeted at small and marginal farmers who have landholding of about 1acre to 5 acres.
The product would also be made available to landless farmers who do farming activities on leased land. The trial phase was very successful and the company disbursed loans under the scheme to nearly 30,000 people. Target of Spandana is to offer atleast Rs 200 crore under this loan scheme during the current fiscal, she explained.
Talking about the fund requirement, Ms Reddy said, the company needs to raise Rs 3,000 crore during the current year through bilateral agreements and term loans to support its expansion plans. Besides, Spandana is looking at raising Rs 300 crore equity through private equity players. The company is already talking to couple of PE firms and the deal should be completed within the next couple of weeks.
There will be slight change in the shareholding pattern subsequent to the PE investment, if the promoters are not going to make any capital infusion, she said. Currently, the promoters hold 51% stake in the company, while JM Financials has 18%, private equity fund Valiant holds 11%, Lok Capital has 5% and the balance 15% is with the senior management.