CreditAccess Grameen IPO.

CreditAccess Grameen IPO

Company Promoters : 

The promoter of the company is CreditAccess Asia NV. It holds 126,985,513 Equity Shares, equivalent to 98.88% of the pre-Offer issued, subscribed and paid-up equity share capital and will continue to hold a majority of the post-Offer paid-up Equity Share capital of the Company.

Netherlands based CAA is a company engaged in providing financial services to micro, small businesses, and self-employed people. CAA has investments in microfinance institutions in several emerging countries including India, Vietnam, Indonesia and the Philippines.

Business Description : 

CreditAccess Grameen is a leading micro-finance institution headquartered in Bangalore, focused on providing micro-loans to women customers predominantly in Rural Areas in India. According to CRISIL Research, it was the third largest NBFC-MFI in India in terms of gross loan portfolio as of March 31, 2017. 

The company primarily focuses on providing income generating loans to women with low annual household income in Rural Areas. It also provides other types of loans for family welfare, home improvement and emergency funds.

The loans are provided primarily under the joint liability group (“JLG”) model. Income generation loans comprise 87.02% the total JLG loan portfolio.

Presently the company covers 132 districts in the eight states (Chhattisgarh, Goa, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Odisha, Tamil Nadu,) and Puducherry. It has a network of 516 branches and 4,544 loan officers.

The Gross AUM was ₹49,746.61 million as of March 31, 2018.

The loan disbursements were ₹33,488.46 million, ₹34,026.29 million and ₹60,817.22 million, the financial years ended March 31, 2016, 2017 and 2018 respectively.

The net interest income was ₹2,487.04 million, ₹3,852.04 million and ₹5,109.85 million for the fiscal years ended March 31, 2016, 2017 and 2018 respectively.

Strengths of the Company-

1. Promoted by CreditAccess Asia N.V., a multinational company specializing in MSE financing.
2. Deep penetration in the rural market with 1.85 million active Customers out of the total Customer base of 2.19 million.
3. Strong operational efficiency with the lowest operating expense ratio amongst the top-eight NBFC-MFIs and SFBs for 2017, according to CRISIL.

Objects of the Issue:

  • The Offer comprises of the Fresh Issue and the Offer for Sale.
  • The Company will not receive any proceeds from the Offer for Sale.
  • The net Proceeds from the Fresh Issue will be utilized towards augmenting the capital base to meet future.
  • Capital requirements of the company which are expected to arise out of growth in the Company’s assets, primarily the Company’s loans and advances and other investments.

CreditAccess Grameen’s financial performance (in INR crore)

CreditAccess Grameen IPO details

  • Fresh issue: INR630 crore
  • Offer For Sale: 11,876,485 shares (INR496.44 – 501.19 crore)
  • Total IPO size: INR1,126.44 – 1,131.19 crore
  • Minimum bid (lot size): 35 shares
  • Face Value: INR10 per share

Valuation of CreditAccess Gramin (Based on latest FY)

  • Earnings Per Share (EPS): INR12.11
  • Price/Earnings (P/E) ratio: 34.51 – 34.84
  • Return on Net Worth (RONW): 8.73%
  • Net Asset Value (NAV): INR111.12 per share

CreditAccess Grameen IPO Tentative Dates:

  • Finalisation of Basis of Allotment: On or about Aug 16, 2018.
  • Initiation of refunds: On or about Aug 20, 2018.
  • Credit of Equity Shares to demat accounts: On or about Aug 21, 2018.
  • Commencement of trading of the Equity Shares on the Stock Exchanges: On or about Aug 23, 2018.

Listing Performance of CreditAccess Grameen

  • Listing Date: 23 August 2018.

                                                                           

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