is set to be wobbly for a lot longer with the founder Padmaja Reddy, who exited the micro-lending firm seven months back, rejecting the current management’s proposal for her to agree to non-compete and non-solicitation clauses as she sets on another journey in small-ticket lending.
While Spandana announced on May 30 that an in-principle settlement was nearing completion, she ruled out signing on the dotted lines with those clauses.
“I have not agreed to non-compete and non-solicitation clauses. I also told them that issues like staff leaving Spandana and joining my startup are something that they need to address internally,” Reddy told ET.
She further added that the truce is taking long as it has many other terms that both parties are yet to agree on. This includes settlement of dues between them.
Spandana did not respond to ET’s queries on the matter.
Reddy founded Spandana in 1998 and successfully revived it to one of the country’s biggest microfinance lenders after going through the ordeal of a debt restructuring following the 2010’s Andhra Pradesh microfinance crisis that forced many micro lenders shut shops.
She left Spandana in November last year following disagreement on Kedaara Capital's plan to sell the NBFC-MFI to at a price, which, according to her, was grossly under-valued. Private equity firm Kedaara owns 48.37% in the microfinance entity through its group companies.
“The company is nearing an in-principle settlement with its erstwhile managing director to amicably resolve all differences, that will include a reconciliation of all historical matters,” Spandana said in a regulatory filing to stock exchanges earlier this week.
The company, which failed to adhere to the May 30 deadline for completing statutory audit of annual financial results, attributed it to the delay in the settlement process
“Unfortunately, this process will take some time to complete, and can only be done post the conclusion of the aforementioned settlement,” it said.
The NBFC-MFI also informed the regulator about transition of its senior leadership with managing director Shalabh Saxena and chief financial officer Ashish Damani taking charge on March 19.
It reported provisional and unaudited consolidated net profit at Rs 30 crore for the quarter ended March 31 with assets under management being at Rs 6,533 crore. The total non-restructured on book portfolio was Rs 5,046 crore. It announced a strong liquidity position with about Rs 900 crore of cash on hand.
Reddy, meanwhile, acquired Kolkata-based non-banking company Rajshree Tracom Pvt Ltd and renamed it Keertana Finserv for the second stint in small loan businesses.
While Spandana announced on May 30 that an in-principle settlement was nearing completion, she ruled out signing on the dotted lines with those clauses.
“I have not agreed to non-compete and non-solicitation clauses. I also told them that issues like staff leaving Spandana and joining my startup are something that they need to address internally,” Reddy told ET.
She further added that the truce is taking long as it has many other terms that both parties are yet to agree on. This includes settlement of dues between them.
Spandana did not respond to ET’s queries on the matter.
Reddy founded Spandana in 1998 and successfully revived it to one of the country’s biggest microfinance lenders after going through the ordeal of a debt restructuring following the 2010’s Andhra Pradesh microfinance crisis that forced many micro lenders shut shops.
She left Spandana in November last year following disagreement on Kedaara Capital's plan to sell the NBFC-MFI to at a price, which, according to her, was grossly under-valued. Private equity firm Kedaara owns 48.37% in the microfinance entity through its group companies.
“The company is nearing an in-principle settlement with its erstwhile managing director to amicably resolve all differences, that will include a reconciliation of all historical matters,” Spandana said in a regulatory filing to stock exchanges earlier this week.
The company, which failed to adhere to the May 30 deadline for completing statutory audit of annual financial results, attributed it to the delay in the settlement process
“Unfortunately, this process will take some time to complete, and can only be done post the conclusion of the aforementioned settlement,” it said.
The NBFC-MFI also informed the regulator about transition of its senior leadership with managing director Shalabh Saxena and chief financial officer Ashish Damani taking charge on March 19.
It reported provisional and unaudited consolidated net profit at Rs 30 crore for the quarter ended March 31 with assets under management being at Rs 6,533 crore. The total non-restructured on book portfolio was Rs 5,046 crore. It announced a strong liquidity position with about Rs 900 crore of cash on hand.
Reddy, meanwhile, acquired Kolkata-based non-banking company Rajshree Tracom Pvt Ltd and renamed it Keertana Finserv for the second stint in small loan businesses.
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