Spandana Sphoorty Financial Limited has filed its monitoring agency report for the quarter ended December 31, 2025, with BSE and NSE. The report, prepared by CARE Ratings Limited, provides details on the utilization of proceeds from the company's rights issue under SEBI regulations.

Rights Issue Details and Proceeds Utilization

The company's rights issue was structured for Rs. 400 crore with an issue period from August 01, 2025 to March 31, 2027. However, the company actually received Rs. 199.35 crore, representing 50% of the total issue size, due to rejection of some invalid applications submitted by applicants.

Object-wise Fund Deployment

The monitoring report reveals complete utilization of the received proceeds across the stated objectives:

During Q3FY26, the company utilized Rs. 3.18 crore towards issue expenses, bringing total issue expense utilization to Rs. 4.33 crore against the estimated Rs. 4.36 crore. Notably, no amount was utilized during the quarter for the primary objective of capital base augmentation, as the company had already deployed Rs. 195.02 crore in previous quarters.

Monitoring Agency Assessment

CARE Ratings Limited reported no material deviations from the objectives stated in the offer document. The monitoring agency noted that Rs. 5.02 crore originally allocated for general corporate purposes was utilized towards the primary objective of augmenting capital base and meeting funding requirements.

The report highlighted that the company has been facing operational challenges, including:

• Significant decline in scale and deterioration in asset quality
• Reporting losses since Q2FY24 due to microfinance sector stress
• Breach of financial covenants affecting Rs. 306 crore of outstanding borrowings
• Waiver obtained for Rs. 219 crore of debt as of September 30, 2025

Company's Recovery Outlook

Despite the challenges, the company's Board of Directors noted improvement beginning in Q2FY26 that strengthened further in Q3FY26. The recovery is attributed to rising disbursement volumes and renewed borrower engagement, with collection efficiency in current buckets showing steady improvement. Loans originated in FY26 comprise 58% of the portfolio and demonstrate strong collection performance.

Regulatory Compliance

The monitoring report was submitted in compliance with Regulation 32(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 82(2) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report has been made available on the company's website at www.spandanasphoorty.com .

Spandana Sphoorty Financial Limited has announced the successful completion of its postal ballot process, with shareholders approving three critical corporate governance resolutions on January 20, 2026. The microfinance company conducted the voting through remote e-voting mechanism, demonstrating strong shareholder confidence in the proposed leadership changes.

Postal Ballot Overview

The company initiated the postal ballot process through a notice dated December 17, 2025, seeking shareholder approval on key appointments and remuneration matters. The voting period extended from December 19, 2025, at 9:00 AM to January 17, 2026, at 5:00 PM, with KFin Technologies Limited serving as the service provider for the remote e-voting facility.

Resolution Results

All three resolutions received overwhelming shareholder support, with approval rates exceeding 99% across all categories. The voting results demonstrate strong confidence in the company's leadership decisions.

Resolution 1: Director Appointment

The ordinary resolution to approve the appointment of Venkatesh Krishnan (DIN: 02078403) as Director received 99.995% approval from shareholders.

Resolution 2: Managing Director Appointment

The special resolution for appointing and determining remuneration of Venkatesh Krishnan as Managing Director and Chief Executive Officer secured 99.994% shareholder approval.

Resolution 3: Chairperson Remuneration Revision

The ordinary resolution to approve revised annual remuneration for Chairperson and Independent Director Abanti Mitra (DIN: 02305893) received 99.992% approval.

Share Capital Structure

The company's paid-up equity share capital as of the record date stood at ₹79.97 crores, comprising both fully paid-up and partly paid-up equity shares. The voting structure reflects proportionate rights based on paid-up value.

Compliance and Process

The postal ballot process adhered to all regulatory requirements under the Companies Act, 2013, and SEBI Listing Regulations. Y. Ravi Prasada Reddy of RPR & Associates served as the scrutinizer, ensuring transparent and fair voting procedures. The company published advertisements in Financial Express and Nava Telangana newspapers on December 19, 2025, informing stakeholders about the postal ballot completion.

The successful completion of these resolutions positions the company for continued growth under new leadership while maintaining strong corporate governance standards. Company Secretary Vinay Prakash Tripathi confirmed that the voting results and scrutinizer's report would be made available on the company's website at www.spandanaspooorty.com .