Shares of Spandana Sphoorty Financial fell nearly 5 percent on Thursday, December 22, a day after the board of the company approved the issuance of non-convertible debentures (NCDs) worth 300 crores.
During Thursday's trade, the stock opened on a positive note at Rs. 575 per share against the previous close of Rs. 570.65 per share. However, the stock plunged during the early trade to hit an intraday low of Rs. 542.15 per share. At 11:40 a.m., the stock was trading at around ₹543.35 apiece, down by 4.75 percent on the NSE.
The stock touched a 52-week-high of Rs. 653.95 on September 19, 2022 and a 52-week-low of Rs. 286.65 on June 20, 2022, indicating that at the current level, the stock is trading nearly 90 percent above its 52-week low and 16.9 percent below its 52 week high.
On the technical front, the stock has declined by over 14 percent in the last five days. However, it has given a positive return of nearly 63 percent in the past six months. Furthermore, in past one year, the stock has grown by almost 25 percent.
On Wednesday, the board of Spandana Sphoorty Financial approved the issue of non-convertible debentures (NCDs) having a face value of ₹10 lakh each aggregating up to ₹300 crore in three rounds, reported Business Standard.
The tenure of the first tranche will be 14 months from the allotment date. The tenure of the second tranche will be 28 months from the deemed date of allotment. The next round of NCDs will have a tenure of 36 Months from the deemed date of allotment.
Under each round, the company will issue 1,000 senior, secured, rated, listed, redeemable, non-convertible debentures having a face value of ₹10 lakh each aggregating up to ₹100 crore. The rate of interest is fixed at 11.355 per annum.
In Q2 FY23, Spandana Sphoorty Financial recorded a consolidated net profit of ₹55.15 crore, compared to a net loss of ₹57.94 crore in Q2 FY22. For the quarter that ended on September 30, 2022, overall revenue fell 21.7 percent YoY to ₹310.15 crore.
Spandana Sphoorty Financial Ltd., established in 2003, is a mid-cap business with a market valuation of Rs. 4,048.61 crores functioning in the NBFC sector. It is an India-based microfinance institution company that operates through the financing segment. The company covers over 18 states with approximately 1,010 branches.