Business Daily from THE HINDU group of publications
Sunday, Oct 07, 2007
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Business Daily from THE HINDU group of publications Sunday, Oct 07, 2007 ePaper |
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Money & Banking
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Financial Services Industry & Economy - Rural Development Spandana plans to raise Rs 400 cr in next 6 months G. Naga Sridhar Hyderabad, Oct. 6 Microfinance player Spandana Sphoorty Innovative Financial Services Ltd plans to raise Rs 400 crore over next six months to meet its fund requirement. The Hyderabad-based company, which operates in southern States, is taking the bank-loan route to mobilise funds. “We have received commitment from SIDBI, Indian Overseas Bank and ING Vysya Bank for Rs 100 crore, Rs 50 crore and Rs 75 crore, respectively,” Ms G. Padmaja Reddy, Managing Director, Spandana, told Business Line here. Besides, it has approached other banks including HDFC Bank, Punjab National Bank, IDBI and Axis Bank for loans. “The proceeds of these loans will be used primarily for disbursals,” she said. On the equity front, SIDBI will be making Rs 10 crore equity investment in Spandana soon. “The deal is almost finalised and SIDBI will get 5-7 per cent equity stake very soon,” Ms Padmaja said. Currently, JM Financial and Low Capital have 25 per cent and 10 per cent equity in the company, respectively, while the promoters’ stake is at 65 per cent. On the possible equity investment by others, she said the company was not interested in taking further equity investment. “With Rs 90 crore capital base and Rs 330 crore outstanding capital, we have lot of scope for equity. But it is difficult to convince our shareholders on adding more equity investment,” she explained. Spandana has lined up expansion beyond Andhra Pradesh over next six months. “We are focusing more on Maharashtra and Karnataka as the micro-finance in Andhra Pradesh is highly competitive and crowded,” Ms Padmaja said. More Stories on : Financial Services | Rural Development
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