Spandana Sphoorty Financial Ltd. on Monday announced the sale of its stressed loans portfolio worth Rs 304.4 crore to an asset reconstruction company.
The board of directors has "approved the sale of stressed loan portfolio including written off loans pool with outstanding value of Rs 304.41 crore as on June 30, 2024 to an asset reconstruction company (ARC) pursuant to open bid method," it said in an exchange filing.
The stressed loan portfolio is being sold for Rs 16.74 crore on "security receipts consideration basis", it added.
The identity of the ARC which will buy the stressed loan portfolio was not disclosed in the regulatory filing.
"The ARC has subscribed to 91.5% of security receipts amounting to Rs 15.32 crore, whereas the company has subscribed to 8.5% of security receipts amounting to Rs 1.42 crore," Spandana Sphoorty noted.
In the quarter ended June 2024, the non-banking financial company's net non-performing assets ratio rose to 0.53%. It stood at 0.3% in the preceding quarter and at 0.49% in the year-ago period.
On Monday, the shares of Spandana Sphoorty closed 1.86% lower at Rs 592.3 apiece on the NSE. In comparison, the benchmark Nifty 50 climbed by 0.57%.
In the last 12 months, the NBFC's stock is down 22.1%, and the year-to-date decline has been sharper at 47.5%.
All the 10 analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 53.4%.
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