Spandana Sphoorty Financial has announced the allotment of non-convertible debentures worth ₹415 crores on a private placement basis, marking a significant capital raising initiative by the microfinance company. The Management Committee of the Board of Directors approved this allotment on December 23, 2025.

Debenture Allotment Details

The company has successfully allotted 41,500 rated, listed, senior, secured, redeemable, taxable, non-convertible debentures through its Management Committee resolution. Each debenture carries a face value of ₹1,00,000, making this a substantial fundraising exercise for the company.

Debenture Characteristics

The debentures are structured as rated, listed, senior, secured, redeemable, and taxable instruments, providing investors with multiple layers of security and transparency. The senior and secured nature of these debentures indicates priority in repayment and backing by company assets, making them attractive to institutional investors.

Previous Leadership Changes

Earlier, the company had announced a key leadership transition with the resignation of Chief Information Officer Arvind Murarka, who stepped down citing personal reasons. This departure marked a significant change in the company's senior management structure, particularly affecting the technology and information systems division.

Capital Market Implications

This debenture allotment represents a strategic move by Spandana Sphoorty Financial to strengthen its capital base through debt instruments. The successful completion of this private placement demonstrates investor confidence in the company's business model and growth prospects in the microfinance sector.

Spandana Sphoorty Financial Ltd has completed the allotment of 8,500 secured redeemable non-convertible debentures worth ₹85.00 crore and approved a significant expansion of its debt fundraising program. The Management Committee of the Board of Directors, in its meeting held on December 17, 2025, sanctioned the allotment of the initial NCDs and approved additional issuances totaling up to ₹425.00 crore across three tranches.

Completed NCD Allotment

The company has successfully allotted the initial tranche of debt instruments with the following specifications:

Expanded Fundraising Program

The Management Committee has approved an ambitious three-tranche NCD issuance program, significantly expanding the company's debt capital raising capacity:

Payment Structure and Listing Details

The NCDs feature differentiated payment structures across tranches to cater to varied investor preferences. All three tranches will be listed on BSE Limited, providing liquidity options for investors. The instruments carry secured and redeemable features with quarterly and monthly interest payment schedules depending on the specific tranche.

Tranche-I and Tranche-III follow quarterly interest payments with maturity dates of June 30, 2028, while Tranche-II offers monthly interest payments with a shorter tenure ending March 31, 2028. Principal repayment is structured quarterly for Tranche-I and III, while Tranche-II features bullet repayment at maturity.

Strategic Capital Market Initiative

This comprehensive debt issuance program represents a substantial capital market initiative for the financial services company. The total potential fundraising of ₹510.00 crore (including the completed ₹85.00 crore allotment and the approved ₹425.00 crore program) demonstrates the company's strategic approach to accessing institutional funding through private placement routes while maintaining operational flexibility through the green shoe options across all tranches.