Spandana Sphoorty Financial IPO Review, Price, GMP

Spandana Sphoorty Financial IPO Review

Spandana Sphoorty Financial Limited is a rural area focused NBFC Microfinance Institution. This company is mainly engaged in offering small-ticket unsecured loans to help the women in the low-income bracket in rural and urban areas. The article focus on the Spandana Sphoorty Financial IPO Review along with the date, price, etc.

Spandana Sphoorty Financial Issue Details :

  • IPO Opens on – August 5, 2019
  • IPO Closes on – August 7, 2019
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 853 – Rs. 856 Per Equity Share.
  • Issue Type – Book Built Issue IPO.
  • Market Lot – 17 Shares.
  • Minimum Order Quantity – 17 Shares.
  • Issue Size – 14,046,056 Equity Shares of Rs. 10 (aggregating up to Rs. 1,200.94 Cr).
  • Fresh Issue – [ 4,689,331 ] Equity Shares of Rs. 10 (aggregating up to Rs. 400.00 Cr).
  • Offer for Sale – 9,356,725 Equity Shares of Rs. 10 (aggregating up to Rs. [.] Cr).
  • Listing Exchange – BSE, NSE.
  • Draft Prospectus – Download

Objectives of the issue of the Company :

  • Augmenting the capital base of Spandana Sphoorty Financial Limited.
  • General corporate purposes of this company.
Spandana-Sphoorty Financial IPO Review

About The Company –

  • Spandana Sphoorty Financial Limited was incorporated in 2003.
  • Mainly Spandan is a Sankrit word and it means Response.
  • Spandana Sphoorty Financial Limited provides income generation loans, business loans and loans against gold jewellery.
  • This company has a presence across 15 states in India with 4,045 employees and 694 branch network.
  • By offering the loan products to low-income households, Spandana is strengthening the socio-economic condition and improving their livelihoods.
  • This company has started working under CDR mechanism (Corporate Debt Restructuring) of the RBI to revive the business and restructure the borrowings in 2010.
  • Following the implementation of AP Microfinance Ordinance 2010 which crippled the company’s collections and cash-flows, Spandana Sphoorty Financial Limited underwent the corporate debt restructuring (CDR) mechanism and restructured its borrowings.
  • This company had 4,045 employees which is including 2,746 credit assistants operating out of 694 branches in 222 districts across 15 states in India.

Spandana Sphoorty’s Products –

  • Abhilasha (JLG Loans)
  • Shree Loans
  • Loans Against Property (LAP)
  • Gold Loans (Keertana)
  • Phinix Loans
  • Interim Loans

LOCATION :

Spandana Sphoorty Financial Limited

Plot no 31 & 32,
Ramky Selinium Towers,
Ground floor, Nanakramguda,
Gachibowli, Hyderabad-500032.
Landline : 040 – 48126666 / 44386648
Fax : 040-44386640
E-mail us : [email protected]

Grievance Redressal Officer :
ANUJ SABARWAL

Contact No.: 18001205519
Fax : 040-44386640
Email ID : [email protected]

The promoter of Spandana Sphoorty Financial Limited :

  • Padmaja Gangireddy, aged 52 years, is the Promoter and Managing Director of this Company.
  • Kangchenjunga Limited is another Promoter of this company.
Spandana-Sphoorty Financial Limited

The Board of Directors of this company :

  • Deepak Calian Vaidya is a Non-Executive Chairman and Independent Director of this Company.
  • Padmaja Gangireddy is the Managing Director of this Company.
  • Jagadish Capoor is an Independent Director of this Company.
  • Bharat Dhirajlal Shah is an Independent Director of this Company.
  • Abanti Mitra is an Independent Director of this Company.
  • Ramachandra Kasargod Kamath is a Nominee Director of this Company.
  • Amit Sobti is a Nominee Director of this Company.
  • Kartikeya Dhruv Kaji is a Nominee Director of this Company.
  • Darius Dinshaw Pandole is a Nominee Director of this Company.
  • Sunish Sharma is a Nominee Director of this Company.

Competitive Strengths of Spandana Sphoorty Financial Limited :

  • The main strength of Spandana is their Seasoned business model.
  • Another strength of this company is a large employee base for a high degree of client engagement.
  • Focus on a highly under-served market.
  • Geographically diversified business operations.

Business strategies of this company :

  • Leverage the popular income generation loan product s to derive organic business growth.
  • Leverage the existing branch network by increasing loan portfolio and enhancing employee productivity
  • Increase the presence in under-penetrated states and districts.
  • Further, diversify the borrowing profile and reduce their cost of borrowings.
  • Pursue inorganic growth through acquisitions.

Company Financials :

Spandana Sphoorty Financial IPO Review

The above chart represents the financial information of the company. It states that the company has received a maximum profit in the financial year 2017. Now, we will go through the company DRHP to get all the fundamental ratios. As per the report of FY18, EPS (earnings per share) was 28.57. PE (price to earnings ratio) is not given in the company DRHP. According to FY18 data, RoNW (Return on Net Worth) and NAV/Share are 17.31% and 54.16% respectively. So, Spandana Sphoorty Financial IPO Review carries a NEUTRAL view of the long-term subscriber.

Apart from this, the Grey market premium is also another valid details to analyze any IPO. Hence, you must wait until the issue price is announced before taking an important investment decision for it. The particular Ipo’s GMP is 15-20. This indicates the grey market is also not betting for the IPO aggressively. You may check the Grey Market Premium details from our site. Its Kosak rate is 450 as per the updated news.

So, besides the above information, from the specific issue opening date, one can alternatively check the NSE bid details. If you want, you can also read our past article for getting a step-by-step guide on how to apply in a new issue.

Spandana Sphoorty Financial IPO Review, Price, GMP

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