Spandana Sphoorty approves ₹400 crore rights issue

Shares of Spandana Sphoorty Financial Ltd. gained over 8% on Tuesday, July 15. The company's board approved a fundraise of ₹400 crore through a rights issue.

Record date for the rights issue will be intimated in due course, the company said in an exchange filling.

Tata Capital has not determined the rights issue price and or the entitlement ratio for the same.

Last month, rating agency ICRA downgraded Spandana Sphoorty Financial and retained a negative outlook.

ICRA highlighted that Spandana breached financial covenants on ₹1,058 crore worth of non-convertible debentures (NCDs). While it has secured waivers for around ₹800 crore, waivers are still pending for the remaining debt and some term loans, raising red flags.