Spandana Sphoorty Financial Limited: IPO to opens on August 5, 2019 Price Band from Rs. 853to Rs. 856 per Equity Share

The minimum Bid lot is 17 Equity Shares and in multiples of 17 Equity Shares thereafter

Mumbai, July 31, 2019: Spandana Sphoorty Financial Limited (the “Company”), a rural focused NBFC-MFI with a geographically diversified presence in India, proposes to open its initial public offering (“IPO”) of Equity Shares on August 5, 2019. The Offer consists of a fresh issue of up to Rs. 4,000.00 million (“Fresh Issue”) and an offer for sale of up to 9,356,725Equity Shares, comprising of an offer for sale of up to 5,967,097Equity Shares by Kangchenjunga limited (“Corporate Promoter Selling Shareholder”); up to 1,423,114 Equity Shares by Padmaja Gangireddy (“Individual Promoter Selling Shareholder”); up to 796,509Equity Shares by Vijaya Siva Rami Reddy Vendidandi (“VSRRV”); up to783,747Equity Shares Valiant Mauritius Partners FDI Limited (“Valiant”), 132,831Equity Shares by Helion Venture Partners II, LLC (“Helion II”); up to 129,732Equity Sharesby Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 (“Kedaara AIF 1”); and up to 123,695Equity Shares by Helion Venture Partners, LLC (“Helion”) (together, “Investor Selling Shareholders”).
The Bid/Offer Closing Date will be on August 7, 2019. Bids can be made for a minimum lot of 17Equity Shares and in multiples of 17 Equity Shares thereafter. The Anchor Investor Bid/Offer Period shall be 1(one) Working Day prior to the Bid/Offer Opening Date which is August 2, 2019.
The Equity Shares are proposed to be listed on BSE and NSE (the “Stock Exchanges”).
The net proceeds from the Fresh Issue are proposed to be utilized towards augmenting its capital base to meet future capital requirements and general corporate purposes.

The Global Co-ordinators and Book Running Lead Managers (“GCBRLMs”) to the Offer are Axis Capital Limited, ICICI Securities Limited, IIFL Securities Limited and JM Financial Limited. The Book Running Lead Managers (“BRLMs”) to the Offer are IndusInd Bank Limited and YES Securities (India) Limited.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”). The Offer is being made through the Book Building Process, in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“2009 SEBI ICDR Regulations”), wherein not more than 50% of the Offer shall be allocated on a proportionate basis to QIBs (“QIB Portion”), provided that the Company and the Selling Shareholders, in consultation with the GCBRLMs and the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion”), at the Anchor Investor Allocation Price. At least one-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion. 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the 2009 SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders, other than Anchor Investors, shall mandatorily participate in this Offer through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts and UPI ID, in case of RIBs, if applicable, which will be blocked by the Self-Certified Syndicate Banks (“SCSBs”). Anchor Investors are not permitted to participate in the Offer through ASBA Process. For details, see “Offer Procedure” on page 441 of the Red Herring Prospectus dated July 25, 2019.

The Company and the Selling Shareholders may, in consultation with the GCBRLMs and BRLMs consider participation by Anchor Investors in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended.

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