Spandana Sphoorty Financial hits 52-week low, falls 11% in one week

The company said there will be an unavoidable delay in submission of financial results for the quarter ended September 30, 2021

Shares of Spandana Sphoorty Financial (SSFL) hit a 52-week low of Rs 488, down 3 per cent on the BSE in Wednesday’s intra-day trade. The stock of India’s second-largest microfinance institution (MFI) was trading lower for the fifth straight day, falling 11 per cent, on delay in announcement of September 2021 quarter (Q2FY22) financial results, due to recent flux in management following resignation by managing director Padmaja Reddy and attrition in the information technology team.

With the past one week fall, the stock of non-banking finance company has tanked 41 per cent from its 52-week high of Rs 830 touched on January 14, 2021. It had hit a record low of Rs 403.50 on April 24, 2020 and an all-time high of Rs 1,400 on November 8, 2019. SSFL had made stock market debut on August 19, 2019. The company had raised Rs 1,200 crore by issuing shares at price of Rs 856 per share.

Being a listed entity, the company is required to submit quarterly financial results for Q2FY22 to the stock exchanges, within 45 days from the close of the quarter, i.e. before November 14, 2021. However, it was not in a position to submit the aforesaid results within the prescribed time period, SSFL said informed BSE.

There will be an unavoidable delay in submission of financial results for the quarter ended September 30, 2021. “We have recently undergone changes in management. As disclosed to the stock exchanges on November 02, 2021, our former managing director recently resigned. Immediately thereafter, our information technology team has also undergone attrition,” SSFL said. CLICK HERE FOR FULL RELEASE

Earlier, on November 2, 2021, SSFL had announced the change in its leadership structure, following the resignation of Ms. Padmaja Gangireddy, Founder & Managing Director. The board confirmed the hiring of an eminent industry veteran as its new Managing Director & Chief Executive Officer, and the constitution of a management committee to provide strategic direction to the business operations in the interim as part of the transition plan.