Shares of Spandana Spoorthy Financial hit upper circuit level of 5% on Thursday after the firm said its board has approved the transfer of stressed loan portfolio to an asset reconstruction company (ARC), including the written-off loans of Rs 323 crore. Spandana Spoorthy Financial stock surged 5% intraday to Rs 575.05 against previous close of Rs 547.70 on BSE. The stock has been gaining for the last 4 sessions.
Earlier, the stock opened with a gain of 2.32% at Rs 560.40. The share trades higher than the 5-day and 200-day moving averages but lower than 20-day, 50-day and 100-day moving averages.
The stock has gained 26.39% in a year and risen 21% in 2022. Total 5207 shares of the firm changed hands amounting to a turnover of Rs 29.46 lakh on BSE. Market cap of the firm rose to Rs 3,940.46 crore. Later, the stock closed 1.36% higher at Rs 555.15 on BSE.
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The NBFC stock hit a 52 week high of Rs 650 on September 19, 2022 and┬а 52 week low of Rs 288.75 on June 20, 2022.
┬а“The Board of Directors of the Company vide its resolution dated December 28, 2022, Wednesday has approved the transfer of stressed loan portfolio including written off loans of Rs 323.08 crore outstanding as on September 30, 2022 to an Asset Reconstruction Company (ARC) pursuant to Swiss Challenge Method for a consideration of Rs 95 Crore,” the company said in an exchange filing.
In November, the microfinance lender had said it would raise up to Rs 300 crore by issuing bonds as the board of directors in a meeting held on November 16, 2022, had approved to issue market-linked rated non-convertible debentures (NCDs) with a base issue size of Rs 200 crore and green shoe option of Rs 100 crore.
Spandana Sphoorty reported a consolidated net profit of Rs 55 crore for quarter ended September 2022 compared to reporting a loss of Rs 58 crore in the corresponding quarter of the current fiscal. Meanwhile, the lender’s income dipped to Rs 310 crore, down 21.7% from the year ago quarter.
Spandana Sphoorty Financial Ltd is a micro finance firm head-quartered at Hyderabad, India. It is a public limited company registered with Reserve Bank of India (RBI) as an NBFC-MFI. Spandana, founded by Padmaja Reddy in 1998, was initially set up as a society which later transformed into an NBFC and then finally as an NBFC-MFI.
