Spandana Sphoorty has resolved all differences with founder and managing director Padmaja Reddy by an in-principal agreement, 8 months after her acrimonious exit from the microfinance lender.
In a notice to the stock exchanges, the company said that while Reddy has stepped down as MD, she will continue to be a substantial shareholder and board member.
In November last year, Reddy left Spandana following disagreement with the majority shareholder Kedaara Capital over the company’s proposed sale to Axis Bank. In an email to the company’s employees and its board, Reddy claimed she was forced to resign for objecting to Kedaara’s attempt to sell the company at a depressed valuation to Axis Bank.
“Certain disputes arose between Padmaja Reddy and the Spandana’s board. We are now pleased to inform you that the company and she have resolved their differences and agreed to part ways on amicable terms," said the company in the notice.
While the details of the agreement are not clear, the microfinance lender added that Reddy will remain a well-wisher of Spandana and will extend the required guidance and support.
The company and its board reiterated that they are committed to growing the company’s business with a view to taking it to greater heights.
The announcement for settlement comes after the company failed to adhere to the 30 May deadline for completing statutory audit of annual financial results.
Private equity fund Kedaara Capital-backed Kangchenjunga Ltd is the biggest shareholder in the microfinance institution with a stake of 41.3% at the end of May 2022. Promoters Reddy and her husband hold 15.22% in the company.
Following her exit, Reddy acquired a Kolkata based non-banking finance company which was renamed as Keertana Financial Ltd and is focused on giving gold loans and small ticket business loans.
Spandana posted a profit of ₹39.7 crore at the end of December 2021 compared to ₹30.3 crore during the corresponding period a year ago. Total income stood at ₹330.6 crore at the end of third quarter compared to ₹333.3 crore during the same period a year ago.