Spandana Sphoorty Financial Limited , a prominent microfinance institution, has reported full utilization of Rs. 195.02 crore from its Rs. 400 crore rights issue. This development comes as the company shows signs of recovery amidst ongoing challenges in the microfinance sector.

Utilization of Funds

According to the monitoring agency report by CARE Ratings Limited:

• The company has fully utilized Rs. 190.00 crore towards its primary objective of augmenting the capital base and meeting funding requirements for business activities.
• An additional Rs. 5.02 crore, initially earmarked for general corporate purposes, has also been directed towards the primary objective.

Financial Performance and Recovery Signs

While Spandana Sphoorty has faced significant challenges in recent quarters, including a decline in scale and deterioration in asset quality, the company is showing promising signs of recovery:

• Disbursement volumes have shown an increasing trend, indicating renewed borrower engagement.
• Current bucket collection efficiency has improved consistently across key states.
• Loans originated in the current fiscal year are exhibiting strong collection efficiency.

Ongoing Challenges

Despite these positive developments, the company continues to face some hurdles:

• Spandana Sphoorty remains in breach of some financial covenants, affecting Rs. 432.00 crore of outstanding borrowings.
• Out of this amount, the company has received waivers for Rs. 294.00 crore of debt.

Rights Issue Details

The rights issue, totaling Rs. 400.00 crore, has been partially subscribed:

• The company has received Rs. 199.35 crore, representing approximately 50% of the total issue size.
• The balance of Rs. 200.00 crore is yet to be received.

Looking Ahead

As Spandana Sphoorty navigates through this challenging period, the full utilization of the rights issue proceeds for its core business activities signals a focused approach towards recovery and growth. The improvements in disbursement volumes and collection efficiency are encouraging signs for the company's future performance.

Investors and stakeholders will likely keep a close eye on how the company addresses its ongoing financial covenant breaches and leverages the infused capital to strengthen its position in the competitive microfinance sector.

Spandana Sphoorty Financial , a prominent microfinance institution, has issued a postal ballot notice dated December 17, 2025, seeking shareholder approval for key leadership appointments and remuneration revisions through electronic voting.

Postal Ballot Resolutions

The company has proposed three special resolutions for member approval through remote e-voting:

Executive Compensation Structure

The postal ballot notice reveals comprehensive remuneration details for Venkatesh Krishnan's appointment as Managing Director and Chief Executive Officer:

Leadership Transition Background

The Board of Directors approved Krishnan's appointment on November 25, 2025, following the resignation of the former Managing Director and Chief Executive Officer. Krishnan brings over 34 years of financial services experience, having previously headed the microfinance division at HDFC Bank from 2018.

Voting Timeline and Process

The e-voting process is scheduled as follows:

Chairperson Remuneration Revision

The company also seeks approval for revising Abanti Mitra's annual remuneration from ₹30.00 lakh to ₹50.00 lakh, effective October 1, 2025. Mitra has served as Chairperson and Independent Director since 2021, providing strategic guidance during challenging phases including the recent leadership transition.

Regulatory Compliance

The postal ballot notice complies with Section 110 of the Companies Act, 2013, and SEBI Listing Regulations. The company has appointed Y Ravi Prasada Reddy as Scrutinizer for conducting the e-voting process in a fair and transparent manner.

Shareholders can access the complete postal ballot notice and explanatory statement on the company's website and stock exchange platforms for detailed information on the proposed resolutions.