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CreditAccess Grameen Limited IPO Review

Creditaccess grameen limited ipo review

CreditAccess Grameen Limited is engaged in providing micro-loans to women in Rural Areas in India. It is Bengaluru based company. According to CRISIL Research, this company is third largest NBFC-MFI in gross loan portfolio in the country. From this article, you come to know about CreditAccess Grameen Limited IPO Review along with prospectus, issue details, price, date.

About CreditAccess Grameen Limited IPO Issue Details :

  • IPO Opens on โ€“ August 8, 2018.
  • IPO Closes on โ€“ August10, 2018.
  • Face Value โ€“ Rs. 10 Per Equity Share.
  • Issue Price โ€“ Rs. 418 – Rs. 422 Per Equity Share.
  • Issue Type โ€“ Book Built Issue IPO.
  • Market Lot โ€“ 35 Shares.
  • Minimum Order Quantity โ€“ 35 Shares.
  • Issue Size โ€“ 14,928,909 Equity Shares of Rs 10 aggregating up to Rs 630.00 Cr.
  • Listing Exchange โ€“ BSE NSE.
  • Draft Prospectus โ€“ Click Here.

Objectives of the issue :

  • This 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 this company’s assets, primarily this company’s loans and advances and other investments.

About The Company โ€“

  • CreditAccess Grameen Limited is incorporated in 1991.
  • This company primarily focuses on providing income generating loans to women with low annual household income in Rural Areas.
  • CreditAccess Grameen Limited is 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.
  • CreditAccess Grameen Limited is covers 132 districts in the eight states (Chhattisgarh, Goa, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Odisha, Tamil Nadu,) and Puducherry.
  • This company has a network of 516 branches and 4,544 loan officers.
  • Strengths of CreditAccess Grameen Limited are-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.
CreditAccess Grameen Limited
CreditAccess Grameen Ltd

Promoter of the company :

  • The promoter of this company is CreditAccess Asia N.V. (“CAA”).

Company Financials :

CreditAccess Grameen Limited IPO

CreditAccess Grameen Limited IPO Review :

The above attachment is the last five years financial statement of the company. The company has overall good financial track record. The  PAT (Profit After Tax) is increasing gradually. Last FY18 the profit level is quite high in compare to previous years. Now, have a loot at the prospectus of the company. From the DRHP (draft red herring prospectus) we come to know about fundamental details of the company. EPS (Earniings per Share) basic in the FY17 stands at 10.01. P/E ratio is not available here. According to the FY 17 RoNW and NAV/Share stands at 11.63 and 80.58.

Besides the above fundamental details, if traders want to sure about the IPO, they can check the NSE bid details. The bid details release on the last day of application. In order to understand the steps to apply you can check our article on this. Apart from this, Grey Market Premium is also an important factor to analyze an IPO. However, it is advisable to invest for a long-term in this IPO. CreditAccess Grameen Limited IPO Review carries a NEUTRAL view.

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