Spandana Microfinance plans to raise Rs 1500cr via IPO

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Second largest microfinance firm in India after SKS, Spandana Microfinance is planning to raise about Rs 1,500 crore through an initial public offer (IPO), confirmed it Managing Director Padmaja Reddy. "The company is in talks with Citigroup, Morgan Stanley and JM Financial."

The company, which is set to kick off overseas operations in Nepal and China, aims to use the proceeds from the IPO to build 10 hospitals, Reddy said.

Spandana currently has 4.2 million borrowers and its total disbursals currently stand at about Rs 4,200 crore. It also has a Rs 600 crore equity base.

The cumulative disbursals stood at Rs 16,000 crore.

Currently, stakeholders in Spandana include Lok Capital, JM Financial and Valiant, among others while the promoters' group hold nearly 50 per cent.

Recently, SKS Microfinance became the first MFI in the country to go for IPO by raising $358 million through its IPO.

There are 13,000 microfinance institutions in the country but only 20 are scalable.

(With inputs from The Hindu Business Line)