MFI Spandana Sphoorty to buy Criss Financial for Rs 50 cr

Micro-finance institution Spandana Sphoorty Financial Ltd on Thursday approved an investment of Rs 50 crore in equity share capital of its subsidiary Criss Financial Holdings Ltd (CFHL) in one or more tranches.

CFHL is engaged in the business of finance by providing individual loans, small business loans, mortgage loans and group loans.

It reported a turnover of Rs 34.7 crore in FY20 with assets under management totalling Rs 185 crore.

Spandana Sphoorty said the takeover is for cash consideration up to Rs 50 crore by way of subscription to equity of CFHL at Rs 177 per share in one or more tranches.

The non-banking micro-finance company has presence in 18 states with over 1,000 branches and 7,000 employees.

According to reports, the micro-finance industry's gross loan portfolio grew by over 10 per cent year-on-year to Rs 2.32 lakh crore as on December 31, 2020.

Backed by increased demand, micro-finance loan disbursements are reaching almost at pre-Covid levels.

( With inputs from ANI )

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