Spandana Sphoorty Financial Ltd IPO: Analysis, Review, Update
Update –
Quarterly Numbers:
Spandana Sphoorty Financial Limited – a public limited company registered with Reserve Bank of India (an NBFC-MFI) has announced its financial results for quarter and year ended March 31, 2022.
On a standalone basis, the company’s total income for the period ended 31 March, 2022 stood at INR 274.85 Cr as against INR 330.67 Cr for the period ended 31 December 2022, registering a de-growth of 16.88% Q-O-Q basis. The same stood INR 465.61 Cr a period year ago, de-growth of 41% Y-O-Y basis.
Total expenses stood at INR 252.30 Cr as on 31 March 22, INR 278 Cr for the quarter ended 31 December 22. The same was INR 408.97 Cr a year ago period.
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The Company reported a PAT of INR 18.27 Cr for the quarter ended 31 March ’22 versus INR 39.73 Cr a quarter ended 31 December ’22, registering a fall of 54% Q-O-Q basis. While the y-o-y profit de-grew by 56% (INR 41.64 Cr)
EPS of the company stood at INR 2.79 as on 31-3-2022, INR 6.47 as on 31-12-2022, and INR 6.47 as on 31-3-2021.
Here is a daily chart of the company.
19-Aug-2019
Update
Spandana Sphoorty Financial Ltd debuts with moderate discount at INR 848.40
Shares of microfinance lender Spandana Sphoorty Financial Ltd managed to trim losses towards the end of the market and closed a tad below its issue price on August 19.
The stock closed at INR 848.40 on the Bombay Stock Exchange, down 0.89% against issue price of Rs 856. On the NSE, it fell 0.14% to close at INR 854.75.
However, most broking firms are positive on the stock keeping a long term view, because of (1) the strong fundamentals of the company and (2) the turnaround in the business.
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Spandana Sphoorty Financial Ltd – a leading rural focused NBFC-MFI with a geographically diversified presence in India is planning to raise INR 1200.94 Cr via IPO [Fresh Issue (INR 400 Cr) and Offer for Sale (INR 798.13 Cr to 800.94 Cr)]
Spandana Sphoorty Financial Ltd – Company Profile
Spandana was founded by Mrs. Padmaja Reddy in the year 1998 as a Society which was later transformed into an NBFC and subsequently as NBFC MFI.
Spandana Sphoorty incorporated as a public company in 2003 and registered as an NBFC with the RBI in 2004. Subsequently, the company registered as an NBFC-MFI in 2015.
As of March 31, 2018, Spandana Sphoorty Financial is the 4th largest NBFC-MFI (Micro Finance Institution) and the sixth largest amongst NBFC-MFIs and SFBs in India, in terms of AUM (Source: ICRA Research; see “Industry Overview –Benchmarking of Spandana Sphoorty Financial Limited on various parameters” on page 109)
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Spandana Sphoorty – Business Activity
The company offers income generation loans under the joint liability group model, predominantly to women from low-income households in rural areas.
The company provides
(1) Income generation loans,
(2) Business loans, and
(3) Loans against gold jewellery
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Company Products
- Abhilasha (JLG Loans) – Abhilasha stands for “Aspiration”. This unique loan is designed especially for low-income households
- Shree Loans – Shree stands for “Good Beginning”. Offered in the state of Andhra Pradesh,
- Loans Against Property (LAP) – Sometimes big ideas need small help, thus the company have designed Loan Against Property known as LAP.
- Gold Loans (Keertana) – Gold Loans are given against the mortgage of Jewellery.
- Phinix Loans – All of the company’s products are designed for the welfare and economic upliftment of the rural population majorly women.
- Interim Loans – The company ve introduced Interim loans to assist the borrowers who are struggling to meet short-term liquidity requirements.
Company Network
With that humble beginning in 1998, the organisation had 4,045 employees (including 2,746 credit assistants) operating out of 694 branches in 222 districts across 15 states in India, as on 31 March, 2018
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Competitive Strengths
- Seasoned business model with resilient performance through business cycles
- High degree of client engagement and robust risk management, leading to superior asset quality and collections
- Streamlined systems and processes and high employee productivity leading to low operating expense ratio
- Focus on the high potential and under-served rural segment
- Geographically diversified operations leading to risk containment and business resilience
- Significant industry experience from Promoter and management team
Company Promoters
Padmaja Gangireddy and Kangchenjunga Limited are the promoters of the company.
IPO Details – Price, Minimum Bid and Other
Spandana Sphoorty – Financials
CONCLUSION –
Considering the company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on Spandana Sphoorty Financial Ltd IPO
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