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.

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.