Microfinance lender Spandana Sphoorty Financial started off trade at a 3.6 percent discount to its issue price on its first day on exchanges. Padmaja Gangireddy, managing director of Spandana Sphoorty, spoke to CNBC-TV18 about the company's initial public offering (IPO) proceeds and its financial standing.

“We raised Rs 1,200 crore in IPO out of that Rs 400 crore was primary and Rs 800 crore was secondary,” said Gangireddy.

“We want to increase the capital. Before IPO the capital adequacy was at 40 percent. So post Rs 400 crore infusion the capital adequacy is going to further increase to 46 percent,” she added.

Talking about assets under management (AUM), Gangireddy said, “The assets under management has grown well in the last two years. FY17 was the time when we exited corporate debt restructuring (CDR). So we got into CDR after Andhra Pradesh crisis in 2011.

“When we exited from CDR it was just Rs 1,100 crore and we were the eighth largest microfinance organization then. In FY18 the portfolio grew from Rs 1,100 crore to Rs 3,100 crore. It was 144 percent growth and subsequently from Rs 3,100 crore the portfolio grew to Rs 4,400 crore by FY19 and by June 2019 the portfolio grew to Rs 5,200 crore,” she further added.

On loan book front, she said: “We should be able to continue to grow on the same scale . In FY18 it was 144 percent growth; we will not be able to continue at that rate. That was basically while we were in CDR, we were not able to access funding.

"So we had borrows, we were not able to give them loans but soon after exit we were able to give them loans and as such the portfolio grew by 144 percent but again FY19 it got moderated. I think going forward we will be able to continue to grow at the same scale.”