Padmaja Gangireddy, the Founder Managing Director of Spandana Sphoorty Finance (SSF) has resigned.
Key points to note –
- SSF is a private equity controlled entity. Kedaara Capital owns about 45% of the Company whereas Padmaja owns about 17%.
- Padmaja in a letter to employees has attributed the reason for resignation to be her disagreement of valuation at which Kedaara is pushing for SSF’s sale to Axis bank. “I opposed underselling of the company to Axis Bank at a throwaway price. While other MFIs were acquired at 4.75x and 3,5x BV multiples in the past few months, Kedaara wanted to sell Spandana at 1.6x, which is one-third of other company’s valuation. They are hell-bent on selling the company for their personal benefits,” Gangireddy said in the letter.
SSF in it’s intimation to the exchanges has confirmed it’s acceptance of Padamaja’s resignation and simultaneously has also informed that they have hired a replacement who is an industry veteran. The company didn’t disclose the name of the replacement. Industry sources said that Shalabh Saxena, MD & CEO of Bharat Financial Inclusion Ltd, could be appointed as the new CEO of Spandana.
The public spat between Kedaara Capital and Spandana Sphoorty’s founder Padmaja Reddy is taking a new twist with the private equity firm questioning Spandana’s IT management and the functioning of the gold loan business of its subsidiary under her leadership.
Read more at:
https://economictimes.indiatimes.com/industry/banking/finance/banking/new-twist-in-spandana-founder-and-kedaara-capitals-public-spat/articleshow/87850113.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Spandana board has approved the appointment of Shalabh Saxena as MD and CEO for a period of five years.
It has also approved the appointment of Ashish Damani as the chief financial officer.
Both Saxena and Damani are currently working with Bharat Financial Inclusion.
“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.
While Ms. Reddy is no longer serving as the Managing Director of the Company, she continues to be a substantial shareholder and member of the Company’s Board.”
Company informed the above on June 22, 2022
https://www.bseindia.com/xml-data/corpfiling/AttachLive/15211684-eda7-4511-8e2f-c5ca267bb02f.pdf