Credit Access Grameen Limited IPO issue size is of up to 26,805,394 Equity Shares of price band of Rs 418 – Rs 422 aggregating up to Rs 1,131.19 Crores. The opening and closing date date is 8th Aug – 10th Aug 2018. In this Article, we will do a detailed CreditAccess Grameen IPO Review along with in-depth analysis of their IPO object, IPO allotment status, Company overview, Company financials, Price band, Issue Details, Issue Date & more.
CreditAccess Grameen IPO Review & Ratings
|CreditAccess Grameen IPO Ratings & Review|
|Top Brokers Review||7.7/10|
Summary of Credit Access Grameen IPO or Grameen Koota IPO
The Credit Access Grameen Limited popularly known as Grameen Koota is a microfinance firm that is headquartered in Bengaluru, focused on providing micro-loans to women customers predominantly in Rural Areas in India. The focus customer segment is women having an annual household income of Rs 160,000 or less in Urban Areas and Rs 100,000 or less in Rural Areas. The Active Customer Retention Rate for the year ended March 31, 2018 was 84%.
The Promoter is CreditAccess Asia N.V., a multinational company specializing in MSE financing (micro and small enterprise financing), which is backed by institutional investors and has micro-lending experience through its subsidiaries in four countries in Asia.
When the Bharti Finance joins with Induslnd Bank for a Planned Merger that is set to happen soon, this particular IPO raising from Credit Access Grameen would prove to be very helpful for the firm. The IPO would boost their capital assets and is much needed in order to meet the rising demands in the near future.
The stocks would be listed on both NSE as well as BSE. ICICI Securities Limited, Credit Suisse Securities (India) Private Limited, IIFL Holdings Limited and Kotak Mahindra Capital Company Limited are the Lead Managers or Underwriters of the IPO of the company.
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Credit Access Grameen IPO or Grameen Koota IPO Date
The opening and closing date date is 8th Aug – 10th Aug 2018.
CreditAccess Grameen IPO or Grameen Koota IPO Subscription
|Day / Date||QIB||NII||RII||Subscription|
|Day 1 – 8 Aug 2018||0.69x
|Day 2 – 9 Aug 2018||0.79x
|Day 3 – 10 Aug 2018||5.52x
The subscription details will be updated regularly.
Credit Access Grameen IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
- Basis of Allotment: 16 Aug 2018
- Refunds: 20 Aug 2018
- Credit to demat accounts: 21 Aug 2018
- Listing: 23 Aug 2018
Credit Access Grameen Limited IPO Price Band
The price band of the IPO is Rs 418 – Rs 422 Per Equity Share .
Credit Access Grameen or Grameen Kota IPO Issue Size
Credit Access Grameen Limited IPO issue size is of 26,805,394 Equity Shares of Rs 10 aggregating up to Rs 1,131.19 Crores, with Market Lot or Minimum Order Quantity of 35 shares that Amounts close to Rs.14,770 per lot.
Credit Access Grameen Limited IPO Equity Shares Offerings
The public issue consists of a fresh issue of up to Rs 630 Crores and an offer for sale of up to 11,876,485 equity shares by the promoter CreditAccess Asia NV. The shares are listed on both BSE and NSE.
Credit Access Grameen Limited – Company Overview
The Credit Access Grameen Limited is a microfinance company that is situated in the IT city of Bengaluru. The company is aimed at providing financial aid to the poor households from the rural parts of the country. Women are given special preference while granting financial help. The company is registered with the Reserve Bank of India.
They have followed a strategy of contiguous district-based expansion across regions and, as of March 31, 2018, covered 132 districts in the eight states (Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Odisha, Kerala, Goa) and one union territory (Puducherry) in India through 516 branches and 4,544 loan officers.
Key members of the Company
- Udaya Kumar Hebbar (MD & CEO)
- Anal Kumar Jain (Independent Director)
- R. Prabha (Independent Director)
- George Joseph (Independent Director)
Competitive Strengths of the Company
- Customer-centric business model resulting in high customer retention
- Deep penetration in Rural Areas characterized by low competition and built through contiguous district based expansion
- Robust customer selection and risk management policies resulting in healthy asset quality
- Strong track record of financial performance and operating efficiency
- Stable management team with extensive domain experience
- Diversified sources of borrowings and effective asset-liability management
Strategies of the Company
- Continued focus on the customers from Rural Areas
- Expansion of branch network
- Leverage existing capabilities and strengths to diversify product and service offerings
- Focus on optimizing operating costs and improving operational efficiencies
CreditAccess Grameen Limited – Financial Statement
Have a look at the Financial Stability of the company before you invest in it.
Financial Summary (in INR & Million)
|Profit After Tax||1,246.41||802.98||832.41||487.32||166.26|
Earnings per Equity Share
|Earning per Equity Share (in INR & Million)|
The EPS Basic and Diluted value is Rs 12.26 Millions by 31st March 2018.
CreditAccess Grameen Limited has seen massive growth in their PAT in last 5 years. This IPO can become a winner for Investors as the company is looking on a very good growth spree. Must buy this IPO.
Credit Access Grameen Limited – Promoter
CREDITACCESS ASIA N.V is the Promoter of the Company. The promoter holds the majority of the equity shares of the firm.
Interest of Promoters
Interest of Promoters in the promotion of the company
The promoters of the company are interested in the promotion of the company and they are bound to pay the dividends of the equity shares they hold in the market.
Interest of Promoters in the property of the company
The promoters of the company are not interested in any of the properties that are held by the company exactly two years before the drafting of Herring Prospectus. The promoter is also not interested in the acquisition of land, supply of machinery and construction of the building of the company.
Interest of Promoters in the intellectual property of the company
The promoter does not have any interest in the intellectual property of the company.
CreditAccess Grameen IPO Offer Details or Issue Details
|Offer of Equity Shares||Up to [●] Equity Shares, aggregating up to Rs [●] million|
|Fresh Issue||Up to [●] Equity Shares of a face value of Rs 10 each, aggregating up to Rs 6,300 million|
|Offer for Sale||Up to 11,876,485 Equity Shares of a face value of Rs 10 each|
|The Offer consists of:|
|A) QIB Portion||Not more than [●] Equity Shares|
|Anchor Investor Portion||Not more than [●] Equity Shares|
|Net QIB Portion (assuming the Anchor Investor Portion is fully subscribed)||[●] Equity Shares|
|Mutual Fund Portion||[●] Equity Shares|
|Balance for all QIBs including Mutual Funds||[●] Equity Shares|
|B) Non-Institutional Portion Not less than||[●] Equity Shares|
|C) Retail Portion Not less than||[●] Equity Shares|
|Pre and post-Offer Equity Shares|
|Equity Shares outstanding prior to the Offer||128,427,337 Equity Shares|
|Equity Shares outstanding after the Offer||[●] Equity Shares|
Will be updated once finalized.
CreditAccess Grameen IPO Issue Object
Following are the various Objective of IPO issue:
- Company proposes to utilise the Net Proceeds from the Fresh Issue towards augmenting its capital base to meet future capital requirements.
- Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges
- IPO will help in enhancement of our Company’s brand name and creation of a public market for the Equity Shares in India.
- The main objects clause as set out in the Memorandum of Association enables the Company to undertake its existing activities and the activities for which funds are being raised by our Company through the Fresh Issue.
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Credit Access Grameen IPO – Basis of Offer Price
The Offer Price will be decided by the existing shareholders of the company after getting the details about the demand for their services in the market. The promoters and the shareholders together decide the offer price of the equity shares that are planned to be listed.
The offering is done after the consultation with BRLMs’. The face value of the equity shares released by the company is Rs 10 each. The offer price is calculated [.] times the face value at the Floor Price. The Offer Price can also be calculated[.] times the face value of the Cap price of the Price band.
The company believes that the following are the core strengths which enable them to establish a household name for themselves in the market.
- The main goal of customer retention that is done by adopting a customer-centric business model
- By the building of contiguous district expansion, the deep penetration in the rural areas is characterized according to the competition in law
- The customer selection that is robust in nature. The management of healthy assets by following the policy of risk management
- Maintaining a good track record of financial performance and operational efficiency
- The management team with excellent domain experience
- The asset-liability management and the possession of a diversified lenders
- Some of the quantitative factors which may form the basis for computing the Offer Price are as follows:
|Basic & Diluted EPS||RONW||NAV (Rs.)|
- Industry P/E Ratio
- Industry P/B Ratio or Price / Book (P/ B) Ratio:
- Competitive Peers of Credit Access Grameen IPO:
|Particulars||Face Value (Rs.)||EPS (Rs.)||P/E Ratio||RONW (%)||NAV (Rs.)|
|Bharat Financial Inclusion Ltd||10||32.89||35.82||15.19%||215.24|
|Satin Creditcare Network Limited||10||-1.51||-213.18||-0.34%||228.37|
|Au Small Finance Bank Limited||10||10.26||63.06||12.80%||79.84|
|Ujjivan Financial Services Ltd||10||0.61||627.87||0.41%||145.73|
|Equitas Holdings Limited||10||0.92||153.15||1.38%||66.87|
|Shriram Transport Finance||10||68.61||17.69||12.35%||554.82|
|Mahindra & Mahindra Financial||2||17.62||27.16||10.60%||160.5|
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Credit Access Grameen Limited IPO Lead Managers
|ICICI Securities Limited|
|Credit Suisse Securities (India) Private Limited|
|IIFL Holdings Limited|
|Kotak Mahindra Capital Company Limited|
Credit Access Grameen IPO Registrar to the Offer
|Registrar of the Offer|
|Karvy Computershare Private Limited|
- Legal Counsel to the BRLMs as to Indian Law – Luthra & Luthra Law Offices
- Banker to the Offer – ICICI Bank Limited
- Auditor to our Company – S.R. Batliboi & Co. LLP
- Company Secretary and Compliance Officer – Syam Kumar Ravindran Nair
CreditAccess Grameen IPO Review by Top 10 Stock Brokers
Here is the ratings & review by top stock brokers on major 5 parameters:
|Top Stock Brokers Review||Company Reputation||Competitive Edge||Financial Statement||Popularity Index||Promoters Reputation|
CreditAccess Grameen or Grameen Koota IPO Grey Market Premium
The Credit Access Grameen Limited IPO Grey Market Premium price is Rs 20-25, the Kostak rate is Rs 200 and the Subject to Sauda is 450.
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CreditAccess Grameen IPO News
News 2 – Download Prospectus
|What is IPO?|