Spandana Sphoorty IPO Launch On August 5, Price Band Set At Rs 853-856
Larger peers turning into small finance banks opens up an opportunity in microfinance business, says Spandana Sphoorty MD.
Microfinance firm Spandana Sphoorty Financial Services Ltd., which is planning to launch an initial public offering on Aug. 5, said larger peers turning into small finance banks opens up an opportunity in the micro-lending business.
“Almost all large players (in the microfinance segment) have become small finance banks,” Padmaja Gangireddy, managing director at Spandana Sphoorthy, told BloombergQuint during an interaction in Mumbai on Wednesday. “Now all those banks are forced to diversify into other segments as their cost structure has shot up. Such diversification has resulted in small finance banks to focus less or slowly vacate the microfinance business.”
“I don’t have any plans to diversify. We want to double our loan portfolio in each branch to Rs 10 crore on an average in the next three-four years. We are very clear to do only microfinance business,” she added.
The Spandana Sphoorty IPO comprises a fresh issue of up to Rs 400 crore and an offer-for-sale of up to 93.56 lakh equity shares, according to a company statement. The price band is fixed at Rs 853-856 per share.
Watch the full interaction here: