Spandana MFI to raise Rs 400 cr from IPO, Rs 800 cr from OFS

Rural-focused micro-lender Spandana Sphoorty Financial has announced a Rs 400-crore initial public offering along with an offer-for-sale for Rs 800 crore from August 5. The Andhra-based MFI has has set a price band in the range of Rs 853 to Rs 856 per share.

Under the OFS, the promoters and other investors are offering 9.3 million equity shares worth Rs 800 crore, the company said, adding the promoter Padmaja Gangireddy is diluting up to 1.4 million shares, the company said Wednesday. The investors who will also be participating in the OFS are Kangchen Junga (around 0.6 million shares); around 0.8 million shares by Vijaya Siva Rami Reddy Vendidandi; 0.78 million shares by Valiant Mauritius Partners FDI; and 0.13 million by Helion Venture Partners II, it said.

That apart Kedaara Capital Alternative Investment Fund will offload around 0.13 million shares, while Helion Venture Partners will sell around 0.12 million shares in the OFS. "The proceeds from the fresh issue will be used towards augmenting capital base and general corporate purposes," the company said.

Axis Capital, ICICI Securities, IIFL Securities and JM Financial are book running lead managers to the issue, while the OFS is being managed by IndusInd Bank and Yes Securities. PTI HV BEN BEN.