Spandana Sphoorty IPO description – Spandana Sphoorty is a rural focused NBFC-MFI (Micro Finance Institution) with a geographically diversified presence in India. The company offers 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.
Following the implementation of AP Microfinance Ordinance 2010 which crippled the company’s collections and cash-flows, Spandana Sphoorty underwent the corporate debt restructuring (CDR) mechanism and restructured its borrowings. With help of fresh capital infusion from Kangchenjunga (corporate promoter) and Kedaara AIF – 1, the company was able to successfully exit from CDR in March 2017.
As of 31 March 2018, it had 4,045 employees (including 2,746 credit assistants) operating out of 694 branches in 222 districts across 15 states in India.
Promoters of Spandana Sphoorty – Padmaja Gangireddy and Kangchenjunga Limited
| Spandana Sphoorty IPO details | |
| Subscription Dates | 5 – 7 August 2019 |
| Price Band | INR853 – 856 per share |
| Fresh issue | INR400 crore |
| Offer For Sale | 9,356,725 shares (INR798.13 – 800.94 crore) |
| Total IPO size | INR1,198.13 – 1,200.94 crore |
| Minimum bid (lot size) | 17 shares |
| Face Value | INR10 per share |
| Retail Allocation | 10% |
| Listing On | NSE, BSE |
Objects of Spandana Sphoorty IPO
- Augmenting capital base
- General corporate purposes
- Issue expenses
| Spandana Sphoorty’s financial performance (in INR crore) | ||||||
| Â | Â | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
| Total revenues | Â | 325.4 | 348.8 | 378.7 | 587.5 | 1,048.5 |
| Total expenses | Â | 219.5 | 229.5 | 343.6 | 304.8 | 575.1 |
| Net income | Â | 105.1 | 243.2 | 443.3 | 187.9 | 356.5 |
| Net margin (%) | Â | 32.3 | 69.7 | 117.1 | 32.0 | 34.0 |
More about Spandana Sphoorty
Spandana Sphoorty Contact Details
Spandana Sphoorty Financial Limited
Plot No: 31 & 32, Ramky Selenium Towers
Tower A, Ground Floor, Financial District
Nanakramguda, Hyderabad 500 032 Phone:Â +91 40 4812 6666
Email: [email protected]
Website:Â www.spandanaindia.com
Registrar of Spandana IPO
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana Phone: +91 40 6716 2222Â
Fax:Â +91 40 2343 1551Â
Email: [email protected]
Website: www.karvyfintech.com
Valuation of Spandana Sphoorty (FY2019 consolidated)
Earnings Per Share (EPS): INR53.35
Price/Earnings (PE ratio): 15.99 – 16.04
Return on Net Worth (RONW): 16.51%
Net Asset Value (NAV): INR316.84 per share
Spandana Sphoorty IPO Subscription Details
| Category | Shares offered | Subscription (no. of times, at 6:00 pm) | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 2,799,338 | 0.19 | 0.85 | 3.10 |
| NII | 2,106,909 | 0.00 | 0.20 | 0.56 |
| Retail | 4,916,120 | 0.01 | 0.03 | 0.09 |
| Â | Â | Â | Â | Â |
| Total | 9,822,367 | 0.06 | 0.30 | 1.05 |
Spandana Sphoorty IPO Analyst ReviewsÂ
Centrum Wealth Research – Subscribe
Angel Broking – Subscribe
Choice Broking – Subscribe with Caution
Motilal Oswal – Subscribe for Long Term
Sharekhan – Promising for Long Term
SPA Securities – Subscribe
Emkay – Not rated
Spandana IPO Allotment Status
Spandana Sphoorty IPO allotment status is now available on Karvy website. Click on this link to get allotment status.
Listing Performance of Spandana Sphoorty
IPO Opening Date: 5 August 2019
IPO Closing Date: 7 August 2019
Finalisation 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
Listing Price on NSE: INR825 per share (down 3.62% from IPO price)
Closing Price on NSE: INR847.8 per share (down 0.96% from IPO price)
This will be a hit IPO. Killer pricing and solid fundamentals!!
Very risky to invest.