Spandana Sphoorty, the microfinance institution (MFI) backed by Kedaara Capital, and its former MD Padmaja Reddy have agreed to settle on some pending dues, CNBC-TV18 reported on April 12.
According to the report, the Spandana board and Reddy may soon announce the intent to settle on specific dues, which includes Spandana Mutual Benefit Trust paying Rs 20 crore to its gold loan arm and Rs 26 crore to third-party firm Abhiram Marketing.
As per sources, Reddy is yet to withdraw her legal suit against Spandana Sphoorty and its directors.
Earlier in March, Economic Times reported that Padmaja Reddy moved to court seeking reinstatement as the head of the NBFC-MFI, while the firm announced the appointment of Shalabh Saxena on her post.
Reddy challenged the actions taken by Spandana Sphoorty and its directors in coercing and forcing her to resign as MD through threats and intimidation. In the suit, Reddy termed the appointment of Saxena as illegal and in violation of her employment agreement and the Articles of Association. Padmaja Reddy along with her husband Vijaya Sivarami Reddy Vendidandi own 16.79 percent stake in the Hyderabad-based microfinance firm.
Also in March, reports of Spandana Sphoorty's shareholders approving Rs 300 crore fundraising through preferential allotment of shares even as founder Padmaja Reddy voted against the resolution arrived.
This move let private equity investor Kedaara Capital to raise its stake in the company from the current 45.5 percent, added the report. Kedaara currently holds 45.5 percent in Spandana through a special purpose vehicle called Kanchenjunga Ltd.
Despite Reddy claiming Spandana board did not follow the due process of valuation as required under the Articles of Association commitments, the firm stated that the pricing of the issue was based on the SEBI-regulated formula and the assessment of an independent third party valuer.
Spandana had been in news ever since Reddy resigned as managing director on November 2, 2021, following a a tiff with Kedaara Capital on its plan to sell the company to Axis Bank.
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