Spandana Sphoorty Financial Limited has announced the approval for transferring its stressed loan portfolio to an Asset Reconstruction Company (ARC), marking a significant step in the company's asset management strategy. The decision was taken by the Management Committee of the Board of Directors.

Transaction Details

The company has received a binding bid from an ARC for its stressed loan portfolio, including written-off loans. The transaction involves substantial amounts that highlight the scale of the portfolio transfer.

Bidding Process and Next Steps

Spandana Sphoorty Financial will follow the Swiss Challenge Method for the bidding process, ensuring transparency and competitive pricing. This method allows other potential bidders to submit counter-offers, potentially improving the terms for the company. The final decision regarding the sale will be made in accordance with:

• Existing guidelines governing the Swiss Challenge Method
• Relevant company policies
• Regulatory requirements under SEBI listing regulations

This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring compliance with mandatory reporting requirements for material events affecting the company's operations.

Spandana Sphoorty Financial Limited has announced a significant capital raising initiative, with its management committee approving the issuance of secured non-convertible debentures worth ₹415 crore through private placement.

Debenture Issuance Details

The management committee's approval covers the following key parameters:

Strategic Capital Raising

The approval of this substantial debenture issuance represents a strategic move by Spandana Sphoorty Financial to strengthen its capital base. The secured nature of these non-convertible debentures indicates that they will be backed by specific assets of the company, providing additional security to potential investors.

Private Placement Approach

By opting for a private placement route, the company is targeting institutional investors and qualified buyers for this debt instrument. This approach typically allows for more efficient capital raising compared to public offerings, enabling the company to access funds from sophisticated investors who understand the financial services sector.

The management committee's approval marks an important milestone in the company's funding strategy, positioning it to leverage debt capital markets for its operational and growth requirements. This development demonstrates Spandana Sphoorty Financial's proactive approach to capital management and its ability to access diverse funding sources in the current market environment.