Spandana Sphoorty sells ₹304.41 Crore stressed loan portfolio

24 Sep 2024 , 02:59 PM

Spandana Sphoorty Financial Ltd approved the sale of a stressed loan portfolio, comprising written-off debts, worth ₹304.41 Crore as of June 30, 2024.

The company’s Management Committee approved a resolution to sell to an Asset Reconstruction Company (ARC) for ₹16.74 Crore using the Open Bid Method.

The company said in its filing, “the Board of Directors approved the sale of a stressed loan portfolio, including written off loans, with an outstanding value of ₹304.41 Crore as of June 30, 2024, to an Asset Reconstruction Company (ARC) using the Open Bid Method for a consideration of ₹16.74 Crore on a Security Receipts basis.”

The transaction will be made using Security Receipts (SRs). The ARC will subscribe to 91.50% of the Security Receipts, equivalent to ₹15.32 Crore, while Spandana Sphoorty will hold 8.50%, equivalent to ₹1.42 Crore.

The ARC subscribed to 91.50% of Security Receipts, totalling ₹15.32 Crore, while the company subscribed to 8.50%, totalling ₹1.42 Crore, according to the statement.

The company provides low-income homes and individuals with a variety of financial goods and services to help them enhance their quality of life. Chetana, Loan Against Property (LAP), and Nano Enterprise Loans are three of the company’s products. Its product is JLG-based microloans for women entrepreneurs.

At around 2.14 PM, Spandana Sphoorty was trading 1.30% higher at ₹600, against the previous close of ₹592.30 on NSE.

For feedback and suggestions, write to us at [e-mail]