Spandana Sphoorty Financial Ltd approves merger of Criss Financial Limited to enhance secured lending capabilities
Spandana Sphoorty Financial Limited (SSFL) announced on June 11, 2026, that its Board of Directors has approved the amalgamation of Criss Financial Limited (CFL) with the company. The transaction, set to proceed via a scheme of arrangement, aims to consolidate lending operations and diversify product offerings under one entity.The merger is being conducted through a scheme of arrangement based on the provisions of the Companies Act, 2013. CFL is slated to be absorbed by SSFL.
CFL is currently engaged in providing finance through individual loans, nano enterprise loans, and secured loans against property. SSFL primarily focuses on lending, offering small value unsecured loans to low-income customers in semi-urban and rural areas. SSFL operates as a non-deposit accepting non-banking financial company (NBFC) - Micro Finance Institution, which it has been since April 13, 2015.
The rationale behind the amalgamation is multifaceted. By combining both companies, the merged entity aims to achieve significant revenue and cost synergies. This includes reducing operational duplication across infrastructure, field force, and risk management practices. The consolidation will improve capital deployment, streamline business operations, and enhance geographical reach by unifying secured and unsecured lending under a single umbrella.
The transaction is structured to provide growth enablement through scale and brand visibility. Integrating CFL’s focus on secured lending into SSFL’s existing platform is expected to diversify revenue lines across multiple products and customer bases, thereby helping the organization reduce its overall borrowing costs.
Financial Profile of Entities Involved in Amalgamation
Details regarding the financial standing of both entities as of March 31, 2026 are provided below:| Particulars | SSFL (Micro Finance) | CFL (Secured Lending) |
|---|---|---|
| Revenue from Operations (in INR crores) | 906.59 | 150.86 |
| Net Worth (in INR crores) | 2,193.75 | 233.11 |
Share Exchange Terms and Operational Details
The transaction is set to integrate the operations of CFL with SSFL through a defined share exchange ratio. The terms dictate that upon the scheme coming into effect, the company will issue new equity shares to the equity shareholders of CFL.The approved Share Exchange Ratio specifies '73 Company Shares' credited as fully paid-up for every 100 equity shares of the face value of Rs. 10 held by such an equity shareholder in CFL.
A review of the shareholding pattern prior to the scheme indicates that SSFL holds a substantial stake, with the collective ownership reaching 8,86,39,506 equity shares, representing 100% of the entity's capitalization before the merger process is finalized.
SPANDANA Stock Price Movement
As of 12:34 PM, shares of Spandana Sphoorty Financial Limited are slipping by 2.27% in live trading, currently trading at ₹228.40. The stock has seen 257,280 shares exchanged during the ongoing session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.