Spandana Sphoorty Financial rose 1.33% to Rs 600.20 after the board of the microfinancier approved a proposal to sell the stressed loan portfolio of the company to an asset reconstruction company (ARC) for Rs 16.74 crore.
On September 14, the board of Spandana Sphoorty had approved the sale of stressed loan portfolio including written off loans.
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Accordingly, the company had invited expression of interests (EoIs) from ARCs, banks, FIs and eligible NBFCs for the proposed sale of stressed loan pool aggregating Rs 304.41 crore.
In an exchange filing made after market hours on Monday, Spandana Sphoorty Financial said that its board has approved the sale of stressed loan portfolio including written off loans pool to an asset reconstruction company (ARC) pursuant to an open bid method. The loan pool has been sold for a consideration amounting to Rs 16.74 crore, on security receipts consideration basis.
The ARC has subscribed to 91.50% of security receipts amounting to Rs. 15.32 crore whereas the company has subscribed to 8.50% of security receipts amounting to Rs. 1.42 crore.
Spandana Sphoorty Financial is a rural-focused non-banking financial company and a microfinance lender (NBFC-MFI) with a geographically diversified presence in India. The company offers income generating loans under the joint liability group (JLG) model, predominantly to women from low-income households in rural areas.
The companys consolidated net profit dropped 53.4% to Rs 55.71 crore in Q1 FY25 as against 119.45 crore posted in Q1 FY24. Total income surged 39.8% YoY to Rs 736.98 crore in the quarter ended 30 June 2024.
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