About the Company:
Spandana Sphoorty Financial is a leading, rural focused NBFC-MFI with a geographically diversified presence in India.
As of March 31, 2019, Company is the fourth largest NBFC-MFI and the sixth largest amongst NBFC-MFIs and SFBs in India, in terms of AUM
As of June 30, 2019, Company had 7,062 employees (including 5,051 credit assistants) operating out of 929 branches in 269 districts across 16 states and 1 union territory in India.
Spandana Sphoorty Financial Ltd covers 74,749 villages in 269 districts in 16 states and 1 union territory across India through 929 branches.
Abhilasha loans are given for income generation purposes and are designed for lowincome households that aspire to improve their financial well-being through small ventures. Abhilasha loans are offered to women for setting up and expanding income generating activities (such as grocery stores and tailoring shops) and acquiring productive assets (such as cattle and sewing machines).
Loans against Property:
Loans against property are provided to clients who own businesses, are self-employed or salaried. These loans are given against the mortgage of residential houses / commercial shops (excluding any open plots on agriculture land). These loans are offered in AP and Telangana with a monthly repayment structure.
“Shree” or “good beginning” loans are provided in AP to low/lower middle-income women with a group guarantee. Shree loans seek to help borrowers smoothen cash flows and meet working capital requirements.
Gold loans are given against the mortgage of jewellery. They are offered on an individual loan basis and are designed to meet agriculture, business and short term liquidity needs.
The following table sets forth Key Financial & Operational metrics as of or for the periods indicated:
Company’s Branch Network.
As of June 30, 2019, Company had 929 branches located in 16 states and 1 union territory in India.
Company’s Total No. of Clients.
Positives for the Company:
Seasoned Business model with Resilient Performance.
- Company’s Collection Efficiency for Fiscals 2018 and 2019 were 99.25% and 99.74% on a consolidated basis, respectively.
- ICRA Research notes that company’s performance and asset quality was superior to the industry after demonetization, as a result of company’s rural focus, lower share of portfolio in the most affected districts and geographically diversified portfolio.
Company’s focus on the High Potential and under-served Rural Segment.
- Rural Areas in India are a highly under-served market for formal banking services in terms of access, availability and suitability of products and services. Therefore, we strategically focus on clients in the rural sector.
- As company focuses on the rural segment, As of March 31, 2019, 94.6% of our portfolio was located in Rural Areas., as compared with 61% for 33 NBFC-MFIs as a whole.
Geographically Diversified Operations.
- As of June 30, 2019, Company covers 74,749 villages in 269 districts in 16 states and 1 union territory across India through 929 branches.
- Company’s operations are well-diversified at the branch, district and state levels. Presence in widespread geographies in India offers a potential growth opportunity to further grow the business penetration in same areas and also reach out to more congruent geographies.
Best Risk Management Practices.
- Further, as per company’s risk containment norms, disbursements for any single state must be less than 22.5% of company’s total disbursements.
- In addition, total disbursement at each branch is capped at 600 loans per month, to ensure that sufficient supervisory checks can be done to maintain quality of appraisals.
Company Plans to Increase Presence in under-Penetrated States and Districts.
- According to ICRA Research, many large states such as UP, Bihar, MP, Gujarat, Chhattisgarh, Punjab, Haryana are under penetrated and offer good potential for growth.
- Company has grown its geographical presence by expanding branches into different regions. With this strategy,Company expanded its operations into three new states, Bihar, West Bengal and Tamil Nadu and one union territory, Pondicherry, in the last two years besides restarting operations in Rajasthan where company had exited.
- Company intends to continue to expand their geographical coverage into newer states and union territories as well where company sees business potential (for instance, Assam, Punjab and Haryana).
- Mr. Deepak Calian Vaidya (Designation: Non-Executive Chairman and Independent Director)
- Ms. Padmaja Gangireddy (Designation: Managing Director)
Financials of the Company:
|(in Crores)||FY 15||FY 16||FY 17||FY 18||FY 19|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Spandana Sphoorty Financial Ltd||10||70.39||16.1||23.31%||301.3|
|Bharat Financial Inclusion Ltd||10||70.39||16.1||23.31%||301.3|
|Satin Creditcare Network Ltd||10||41.67||8.8||17.53%||235.0|
|Ujjivan Financial Services Ltd||10||12.43||28.0||8.01%||155.0|
|Bandhan Bank Ltd||10||16.36||32.1||17.42%||93.9|
|Issue Opens on||5th August 2019|
|Issue Closes on:.||7th August 2019|
|Issue Price||Rs.853 – 856|
|Minimum Lot||17 Shares|
|Issue Size||Rs.1200 cr ($174 million)|
|Market Cap||Rs.5504 cr ($798 million)|
|Listing at||NSE & BSE|
|Equity Shares Offered (OFS)||93,56,725|
|Equity Shares Offered (Fresh)||46,72,897|
|Total Equity Shares Offered (Fresh + OFS)||1,40,29,622|
|Equity Shares Prior to the Issue||5,96,33,683|
|Equity Shares after the issue||6,43,06,580|
|Finalization of Basis of Allotment||on or Before 14th August 2019|
|Initiation of Refunds||on or Before 14th August 2019|
|Credit of Equity Shares:||on or Before 16th August 2019|
|Listing Date:||on or Before 19th August 2019|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
Karvy Website (Click on the below Link)
|Company Contact Info:|
|Spandana Sphoorty Financial Limited
Plot No: 31 and 32, Ramky Selenium Towers
Tower A, Ground Floor
Financial District, Nanakramguda Hyderabad 500 032
Tel: +91 40 4812 6666
E-mail : email@example.com
Website : www.spandanaindia.com
|IPO Registrar Info:|
|Karvy Fintech Private Limited
Karvy Selenium Tower B
Plot 31-32, Gachibowli
Financial District, Nanakramguda
Hyderabad 500 032 Telangana, India
Tel: +91 40 6716 2222
Investor grievance E-mail: firstname.lastname@example.org