Money & Banking

Spandana Sphoorty, ex-MD end spat

BL Mumbai Bureau | Updated on: Jun 23, 2022
Padmaja Reddy, former managing director, Spandana Sphoorty

Padmaja Reddy, former managing director, Spandana Sphoorty | Photo Credit: PAUL NORONHA

Agree to part ways amicably

Spandana Sphoorty and its founder and former Managing Director, Padmaja Reddy, have resolved their differences and decided to part ways on amicable terms. The development will also enable the company to declare its financial results for FY22. It had indicated it would try and release the results latest by June 30.

“While Reddy is no longer serving as the MD of the company, she continues to be a substantial shareholder and a member of the board,” the two said in a joint press release. “Needless to state, the company and its board reiterate that they are committed to growing the business with a view to take it to greater heights,” it further said, adding that Reddy continues to remain a well-wisher of Spandana and will extend all the required guidance and support.

Following the announcement, the company’s scrip closed 19.87 per cent higher at ₹399.35 apiece on BSE on Thursday.

Reddy had on November 2, 2021, resigned from her position as the MD and certain disputes had arisen between the two over a plan to sell the NBFC-MFI to Axis Bank at a price, which she said was under valued. In a separate exchange filing, the company said the board and its subsidiaries — Criss Financial Limited and Caspian Financial Services — have on June 21, 2022, approved the settlement agreement and it has been entered into between the company and Reddy. Since then, Reddy has acquired Kolkata-based Rajshri Tracom and renamed it as Keertana Financial Ltd.

Published on June 23, 2022
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