The announcement follows the resignation of its founder and managing director Padmaja Gangireddy. In an exchange notice filed on Tuesday, the MFI said its board had accepted Gangireddy's resignation with immediate effect.
By Piyush Shukla
Spandana Sphoorty Financial, the country’s second-largest microfinance institution (MFI), on Wednesday said it would be hiring a senior industry person as the new MD and CEO. The announcement follows the resignation of its founder and managing director Padmaja Gangireddy. In an exchange notice filed on Tuesday, the MFI said its board had accepted Gangireddy’s resignation with immediate effect.
In a letter to her colleagues, Gangireddy wrote she was not stepping down by choice, but because the board did not extend her contract. “I opposed underselling of company to Axis Bank at a throwaway price. While other MFIs were acquired at 4.75x & 3.5x BV multiples in the past few months, Kedaara wanted to sell Spandana at 1.6x, which is one-third of other companies’ valuation,” she wrote.
Private equity fund Kedaara Capital-backed Kangchenjunga Ltd is the biggest shareholder in the MFI with a stake of 45.5% at the end of September. Gangireddy owns a 15.99% stake in the company. In response to an email query sent by FE, Kedaara Capital said, “The board of directors unanimously gave its approvals of the leadership changes at Spandana as well as for all other strategic discussions of the company. As stated in our press release, the new managing director and CEO will take on the new role in the coming quarter, the details of which will be shared in due course. At this stage, we do not have any further comments to make.”
As on June 30, Spandana Sphoorty’s total assets under management were Rs 7,390 crore.
“KR Kamath, former CMD, Punjab National Bank and board member of Spandana, will chair the management committee, which also comprises two of longest-serving company board members – Abanti Mitra and Kartikeya Kaji,” the exchange notice said.
The notice also said the MFI has hired a new CFO. An exchange notice on October 1 said CFO Satish Kottakota had resigned due to health and personal reasons.