Reports that Spandana Sphoorty Financial’s largest shareholder, Kedaara Capital, is in discussions to sell its shareholding to YES Bank are denied by the company.
On Thursday, Spandana Sphoorty Financial denied rumors that Kedaara Capital, the company’s largest shareholder, was in discussions to sell a stake to YES Bank. The Hyderabad-based firm stated that its corporate promoter and board are still dedicated to executing the business strategy under Vision 2025, which was authorized by the board of directors in July of last year.
Spandana stated in a statement to stock markets that it would continue to adhere to all disclosure and other legal requirements as and when they become applicable.
A similar scheme was abandoned by Kedaara Capital around 18 months ago as a result of Padmaja Gangireddy, the creator of Spandana, alleging that the firm was being sold to Axis Bank.
Spandana stated in a BSE filing that the company “has always disclosed by the company within the stipulated time all the material information/announcement that may have bearing on the operations/performance of the company, including all the necessary disclosures in accordance with regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.”
Following reports in the Economic Times that private equity fund Kedaara had renewed plans to sell the company, this time to YES Bank, Spandana has provided an explanation.
The combined net profit for the March quarter of Spandana Sphoorty Financial increased by 268% to 105.55 crore. The Hyderabad-based firm, which specialises in rural loans, reported a 42% increase in overall revenue to 533 crore from the December quarter.
As of March 31, 2023, the total assets under administration were $8,511 crore, up from $6,581 crore during the same time last year.
The lender demonstrated a significant improvement in the fourth quarter of FY2023, with the gross non-performing assets ratio falling to 2.07% from 18.7% in the comparable quarter.
After Spandana denied rumours of an M&A agreement with YES Bank, its stock fell 4.36% on Thursday in the afternoon.
