Spandana Sphoorty Financial is considering a rights issue, potentially with Kedaara Capital’s participation, to raise Rs 750 crore and bolster investor confidence after a significant annual loss and rising bad loans. The move mirrors Fusion Finance’s experience, where a similar infusion led to a market capitalization jump. The microfinance sector faces broader challenges, including overleveraging and high NPAs.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets