Spandana Sphoorty Financial, a micro lender focusing on rural women, planns to raise Rs 400 crore from its initial public offering (IPO).
Spandana Sphoorty Financial, a micro lender focusing on rural women, planns to raise Rs 400 crore from its initial public offering (IPO). The IPO comprises a fresh issue of up to Rs 400 crore and an offer for sale (OFS) up to Rs 800 crore through sale of 93.56 lakh shares.
The Hyderabad-headquartered company has set a price band of Rs 853-Rs 856 per share for its IPO. The IPO is scheduled to open on August 5 and close on August 7. The anchor book will open on August 2. Bids can be made for a minimum of 17 equity shares and multiples of 17 thereof.
The issue comprises an OFS of up to 59.67 lakh shares by Kangchenjunga Limited, which is the corporate promoter selling shareholder, up to 14.23 lakh shares by Padmaja Gangireddy, up to 7.96 lakh shares by Vijaya Siva Rami Reddy Vendidandi, up to 7.83 lakh shares by Valiant Mauritius Partners FDI, up to 1.32 lakh shares by Helion Venture Partner II, up to 1.29 lakh shares by Kedaara Capital Alternative Investment Fund and up to 1.23 lakh shares by Helion Venture Partners. The net proceeds from the fresh issue are proposed to be utilised towards augmenting its capital base to meet future capital requirements and general corporate purposes. The global coordinators and book running lead managers to the offer are Axis Capital, ICICI Securities, IIFL Securities and JM Financial.
To address geographic concentration risk, the company has specified exposure caps at the state, district and branch levels.
“For instance, the gross loan portfolio of each state must not exceed 22.5% of our total portfolio (except for AP and Telangana) or 100% of our net worth. The gross loan portfolio for each district must not exceed 2.5% of our total portfolio and 7.5% of our net worth,” Padmaja Reddy, founder and managing director, said.