The offer of 93 lakh shares, including by early stage investors and by Padmaja Ganjireddy is open between August 5 and 7.
Its IPO comprises a fresh share sale for Rs 400 crore and an offer for sale for about Rs 800 crore. Investors including Helion Venture Partners and Kedaara Capital would be selling in the offer.
The management is confident of growth despite hiccups faced by micro lenders over the years including a clamp down by Andhra Pradesh a few years ago and a series of farm loan waiver.
“In spite of the Andhra Pradesh (microfinance) crisis and coming out of Corporate Debt Restructuring, we have performed extremely well…In the last two years the new borrower growth has been around 58-60%. We have around 5000 loan officers and each of them will get a minimum of 40 new clients with 100% process compliance,” said Padmaja Reddy, MD, Spandana.
The firm proposes to use the funds for raising its capital buffer and expand business in new geographies.
But given the weak investor sentiment the company has lowered its valuation expectation.
“Depending on the market conditions we have reduced the valuation, even Kedaara felt that there is a lot more potential, and thus advised us to reduce the OFS size” said Sudhesh Chandrasekar, Chief Financial Officer, Spandana.
