Spandana Sphoorty sells stressed loan portfolio worth ₹304.41 crore for a consideration of ₹16.74 crore

The company reported that the loan portfolio sale was conducted through an open bid method on a security receipts consideration basis. The ARC has subscribed to 91.50% of the security receipts amounting to ₹15.32 crore while the balance of 8.50% has been subscribed by the company which is worth ₹1.42 crore.

Spandana had invited ARCs, banks, foreign investors, and non-banking financial companies to participate in the sale of its stressed loan portfolio through an Expression of Interest (EOI).

The company recently raised ₹100 crore through the issue of non-convertible debentures. The company issues 10,000 non-convertible debentures with a face value of ₹1 lakh each. The issue was done on a private placement basis.

For the quarter ended June 30, 2024, the company’s net profit sank 53% year-on-year (YoY) to ₹56 crore. The company’s income for the quarter, however, grew 40% YoY to ₹737 crore with the net interest income recording a 47% YoY growth to ₹425 crore.

The company’s assets under management (AUM) during the quarter jumped 32% YoY to ₹11,723 crore while the total disbursements came in higher by 37% YoY to ₹2,283 crore.

The gross non-performing assets (GNPA) in Q1FY25 came in at 2.60% compared to 1.63% in the corresponding quarter last year. Meanwhile, the net non-performing assets (NNPA) stood at 0.53% which was slightly higher than 0.49% for the same period last year.

Shares of the company have declined by nearly 46% since the beginning of the year. The stock has lost over 20% in the past year.