Spandana to launch Rs 1200 crore IPO

Andhra Pradesh-based Spandana Sphoorty Finance Company is likely to become the third micro finance company to list in the local equity market as it plans to raise Rs 1200 crore through an initial public offer (IPO) which will kick off in the first week of August, including an offer for sale by existing investors worth Rs 800 crore.  Currently, CreditAccess Grameen and Satin Creditcare Network are the only listed micro finance companies after IndusInd Bank acquired Bharat Financial Inclusion in June. Padmaja Reddy, founder and managing director of Spandana Sphoorty, said the funds raised will be used to expand the company’s business and shore up its capital position. “We plan to open 70 branches this year to expand our business. We will also maintain a higher than required capital buffer,” Reddy said. As of June 2019, the company had a network of 929 branches across 16 states and one union territory in India.