Spandana Sphoorty resolves all differences with founder Padmaja Reddy
Premium- The company said that while Reddy has stepped down as MD, she will continue to be a substantial shareholder and board member
MUMBAI : Nearly 8 months after the acrimonious exit of Spandana Sphoorty Financial Ltd’s founder and managing director Padmaja Reddy, the company has resolved all differences with her by way of an in-principal agreement.
In a notice to the stock exchanges, the company said that while Reddy has stepped down as MD, she will continue to be a substantial shareholder and board member.
“Certain disputes arose between Ms. Padmaja Reddy and the Board of Directors of the Company (Board). We are now pleased to inform you that the Company and Ms. Reddy have resolved their differences and agreed to part ways on amicable terms," said the company in the notice.
While the details of the agreement is not clear, the microfinance lender added that Reddy will remain a well-wisher of Spandana and will extend all the required guidance and support
The company and its board reiterate that they are committed to growing the Company’s business with a view to take it to greater heights, the notice added.
The announcement for settlement comes after the company failed to adhere to the 30 May deadline for completing statutory audit of annual financial results.
In November last year, Reddy left Spandana following disagreement with the majority shareholder Kedaara Capital over the company’s proposal sale to Axis Bank. In an email to the company’s employees and its board, Reddy claimed she was forced to resign for objecting to Kedaara’s attempt to sell the company at a depressed valuation to Axis Bank.
Private equity fund Kedaara Capital-backed Kangchenjunga Ltd is the biggest shareholder in the microfinance institution with a stake of 41.3 percent at the end of May 2022. Promoters Reddy and her husband hold 15.22% in the company.
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Following her exit, Reddy acquired a Kolkata based non-banking finance company which was renamed as Keertana Financial Ltd, which is focussed on giving gold loans and small ticket business loans.
Spandana posted a profit of ₹39.7 crore at the end of December 2021 compared to ₹30.3 crore during the corresponding period a year ago. Total income stood at ₹330.6 crore at the end of third quarter compared to ₹333.3 crore during the same period a year ago.