Spandana Sphoorty Financial Limited, an Indian microfinance institution, is evaluating an initial public share offering (IPO) following the recent launch of SKS Microfinance’s IPO, the first IPO by an Indian microfinance institution. Spandana is an Indian microfinance institution with total assets of INR 26.8 billion (USD 580 million) at March 31, 2010. According to Microfinance Information Exchange, its total outreach was 3.7 million borrowers, and return on assets and return on equity were 8.99 percent and 55.67 percent, respectively, as of March 31, 2010.
In a recent interview, referring to a possible IPO, Spandana’s Founder and Managing Director Ms Padmaja Reddy, notes “We are evaluating this at the board level” [1].
SKS Microfinance is an Indian microfinance institution serving impoverished women which has total assets of USD 596 million at March 31, 2009. On July 28, 2010, SKS Microfinance launched India’s first IPO, which had been initially reported by MicroCapital on March 29, 2010.
By Jennifer Shevock, Research Associate
About Spandana Sphoorty Financial Limited:
Spandana Sphoorty Financial Limited provides microcredit and credit-plus services to low-income households in India. The Company was founded by Padmaja Reddy in 1998 and receives its funding from development finance institutions and banks. Total assets are INR 26.8 billion (USD 580 million) at March 31, 2010. According to Microfinance Information Exchange, its total outreach was 3.7 million borrowers in fiscal 2009, and return on assets and return on equity were 8.99 percent and 55.67 percent, respectively, as of March 31, 2010.
About SKS Microfinance:
SKS Microfinance is an Indian microlender that delivers microfinance products through a group lending model to impoverished women in India. It is a for-profit non-banking finance company which converted to a public limited company in May 2009 and launched an initial public offering in July 2010. Equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. Its total assets as of March 31, 2009, were USD 596 million with 3.5 million active borrowers, and it reported return on assets of 3.68 percent and return on equity of 18.72 percent
Sources and Additional Resources:
[1] “SPANDANA could be next in IPO trail from Indian Microfinance sector”
August 1, 2010. http://www.microfinancefocus.com/news/2010/08/01/spandana-could-be-next-in-ipo-trail-from-indian-microfinance-sector/
“SKS Microfinance IPO sees strong demand“ August 2, 2010. http://in.reuters.com/article/idINIndia-50571220100802
MICROCAPITAL BRIEF: “Spandana Sphoorty Innovative Financial Services Limited, a Microfinance Institution (MFI) Based in Hyderabad, India, Issues $5.3m Worth of Commercial Paper” February 8, 2010. https://www.microcapital.org/microcapital-brief-spandana-sphoorty-innovative-financial-services-limited-a-microfinance-institution-mfi-based-in-hyderabad-india-issues-53m-worth-of-commercial-paper/#more-4440
MICROCAPITAL STORY: “Spandana Sphoorty Financial Ltd. Issues INR 800 million (USD 17 million) One-year 10 Percent Bonds in Deal Arranged by Standard Chartered Bank” June 22, 2009.
https://www.microcapital.org/microcapital-story-spandana-sphoorty-financial-ltd-issues-inr-800-million-usd-17-million-one-year-10-percent-bonds-in-deal-arranged-by-standard-chartered-bank/#more-3467
MICROCAPITAL BRIEF: “ Microfinance Launches India’s First Initial Public Offering (IPO) by a Microfinance Institution” July 29, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-launches-india%E2%80%99s-first-initial-public-offering-ipo-by-a-microfinance-institution/
MICROCAPITAL BRIEF: “Quantum Hedge Fund Managed by George Soros Invests in India’s SKS Microfinance, Whose Initial Public Offering (IPO) is Imminent” July 26, 2010. https://www.microcapital.org/microcapital-brief-quantum-hedge-fund-managed-by-george-soros-invests-in-india%E2%80%99s-sks-microfinance-whose-initial-public-offering-ipo-is-imminent/#more-6134
MICROCAPITAL BRIEF: “India’s SKS Microfinance Sets Price for Pending IPO, Offers Discount to Retail Investors” July 22, 2010. https://www.microcapital.org/microcapital-brief-india%E2%80%99s-sks-microfinance-sets-price-for-pending-ipo-offers-discount-to-retail-investors/#more-6053
MICROCAPITAL BRIEF: “Upcoming Initial Public Offering (IPO) of SKS Microfinance Rated as Grade 4/5 By Credit Analysis and Research Limited (CARE Ratings)” July 19, 2010.
https://www.microcapital.org/microcapital-brief-upcoming-initial-public-offering-ipo-of-sks-microfinance-rated-as-grade-45-by-credit-analysis-and-research-limited-care-ratings/
MICROCAPITAL BRIEF: “SKS Microfinance, a Microfinance Institution (MFI) in India, Announces Intentions to Sell Shares From July 28 to July 30” July 13, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-a-microfinance-institution-mfi-in-india-announces-intentions-to-sell-shares-from-july-28-to-july-30/
MICROCAPITAL BRIEF: “Vikram Akula, Founder of Indian Microfinance Institution SKS Microfinance, Speaks Out in Advance of This Month’s Initial Public Offering (IPO)” July 13, 2010. https://www.microcapital.org/microcapital-brief-vikram-akula-founder-of-indian-microfinance-institution-sks-microfinance-speaks-out-in-advance-of-this-month%e2%80%99s-initial-public-offering-ipo/#more-5816
MICROCAPITAL BRIEF: “Indian Microfinance Institution SKS Microfinance Receives Initial Public Offering (IPO) Approval from Securities and Exchange Board of India” July 13, 2010.
https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-sks-microfinance-receives-initial-public-offering-ipo-approval-from-securities-and-exchange-board-of-india/
MICROCAPITAL BRIEF: “India’s SKS Microfinance IPO Could Trigger Trend in Microlending” June 16, 2010. https://www.microcapital.org/microcapital-brief-indias-sks-microfinance-ipo-could-trigger-trend-in-microlending/
MICROCAPITAL BRIEF: “Initial Public Offering (IPO) of India-based Microfinance Institution (MFI) SKS Microfinance Raises Questions about Ethics within the Industry” April 13, 2010. https://www.microcapital.org/microcapital-brief-initial-public-offering-ipo-of-india-based-microfinance-institution-mfi-sks-microfinance-raises-questions-about-ethics-within-the-industry/
MICROCAPITAL BRIEF: “SKS Microfinance Limited, Microfinance Institution (MFI) in India, Files to Raise $250m in Initial Public Offering (IPO)” March 29, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-limited-microfinance-institution-mfi-in-india-files-to-raise-250m-in-initial-public-offering-ipo/
MICROCAPITAL BRIEF: “SKS Microfinance, a Microfinance Institution (MFI) Based in India, Expected to File for Initial Public Offering (IPO) in Next Four Weeks” March 9, 2010. https://www.microcapital.org/microcapital-brief-sks-microfinance-a-microfinance-institution-mfi-based-in-india-expected-to-file-for-initial-public-offering-ipo-in-next-four-weeks/#more-4531
MicroCapital Universe: Spandana Sphoorty Financial Ltd.: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Spandana+Sphoorty+Financial+Ltd
MicroCapital Universe: SKS Microfinance: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance
http://www.mixmarket.org/mfi/spandana
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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