Bangalore-based Credit Access Grameen is a leading microfinance institution that offers micro loans to women customers predominantly from rural areas. The company was India’s third-largest NBFC-MFI in India in terms of its gross loan portfolio as on March 31, 2017, according to CRISIL Research. With a range of loan products, the MFI addresses varied customer needs such as income generation, family welfare, home improvement and emergency loans. Credit Access specialises in joint liability group loans, of which income generation loans comprise nearly 87%. It also offers individual retail loans to borrowers who have a stable credit history, income and business profile. These loans are intended to help them start or expand a business.
With a network of 516 branches and 4,544 loan officers, the company covers 132 districts in eight states — Chhattisgarh, Goa, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Odisha, Tamil Nadu and the union territory of Puducherry. Its gross assets under management (AUM) amounted to was Rs. 4,974.6 crore as on March 31, 2018. Over FY2016 to FY2018, disbursements rose from Rs. 3,348.8 crore to Rs. 6,081.7 crore. Similarly, net interest income rose from Rs. 248.7 crore to Rs. 510.9 crore during the same period.
- Rs. 1,126.44-1,131.19 crore, Fresh Issue – Rs. 630 crore,
Offer for Sale – 1,18,76,485 equity shares - 35 Equity Shares and in multiple thereafter
- QIB - 50% NIB - 15% Retail - 35%
- Rs. 10
- ASBA mandatory (No cheques will be accepted)
- Proposed to be listed on BSE and NSE
- : ICICI Securities Ltd, Credit Suisse Securities (India) Private Ltd, IIFL Holdings Ltd, and Kotak Mahindra Capital Company Ltd
- Karvy Computershare Private Limited
- Customer-centric business model has resulted in high customer retention
- Expanding in contiguous districts and low competition has helped company penetration deeply into in rural areas
- Robust customer selection and risk management policies has kept asset quality healthy
- Company has strong track record of financial performance and operating efficiency
- Management team is strong with deep domain experience
- Loan mix is diversified and asset-liability management is effective
The offer comprises a sale of equity shares that aims:
- To utilise the net proceeds from the fresh issue to augmenting the company’s capital base and meet funding requirements
- To achieve benefits of listing the equity shares on stock exchanges and to carry out the offer for sale by selling shareholders
The company expects the listing of the equity shares to enhance its brand name and create a public market for its equity shares in India.
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
Yes. He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.