Spandana Sphoorthy founder Padmaja Reddy steps down from company’s board

Mumbai: Padmaja G. Reddy, the founder and director of Spandana Sphoorty Financial, has tendered her resignation and requested declassification as a promoter. Reddy has previously had disputes with the majority shareholder, Kedaara Capital, on various issues, including a previous proposal to sell the company to Axis Bank.

In a notice submitted to the exchange, Spandana Sphoorty Financial stated that the company's board has acknowledged and accepted Reddy's resignation, as well as her request for declassification as a promoter. The statement further mentioned that the company is currently initiating the necessary procedures and formalities required by relevant regulations.

Reddy, who previously served as the managing director of the microfinance institution, had stepped down in 2021 due to differences with Kedaara, a private equity fund. In a letter to employees, she revealed that she was compelled to resign as managing director after opposing Kedaara's attempt to sell Spandana Sphoorty Financial at an undervalued price to Axis Bank.

In June 2022, the company issued a notice to the exchange, stating that the differences between the company and its promoter had been fully resolved through an in-principle agreement. "Certain disputes arose between Ms. Padmaja Reddy and the Board of Directors of the Company. We are now pleased to inform you that the Company and Ms. Reddy have resolved their differences and agreed to part ways on amicable terms," the notice stated.

Kedaara Capital is the largest shareholder in Spandana with a 41.3%, while Reddy and her husband hold 15.22%. Under Reddy's leadership, Spandana Sphoorty Financial has emerged as a prominent microfinance institution, dedicated to empowering women and combating poverty in various communities.


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