CreditAccess Grameen Limited IPO

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(i) CreditAccess Grameen Limited IPO Overview

(a)
CreditAccess Grameen Limited (formerly known as Grameen Koota Financial Services Pvt. Ltd.) was born out of the need for timely and affordable credit to India’s poor and low-income households.

(b) Grameen Koota was founded in May 1999 as a project under the T. Muniswamappa Trust (TMT), an NGO in South Bangalore. Grameen Trust, Bangladesh, provided seed capital funding to TMT to replicate the Grameen Bank Bangladesh microfinance model.

(c) In 2007, the microfinance activities of Grameen Koota was transferred from NGO to a well-regulated and registered Non-Banking Financial Company (NBFC). In 2013, it subsequently got reclassified into a regulated and governed Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFI). Grameen Koota continues to be the operating brand name of CreditAccess Grameen Limited (formerly known as Grameen Koota Financial Service Private Limited).

(d) They are a leading Indian microfinance institution headquartered in Bangalore, focused on providing microloans to women customers predominantly in Rural Areas in India who largely lack access to the formal banking sector and present a latent opportunity for offering microloans. According to CRISIL Research, they were the third largest NBFC-MFI in India in terms of the gross loan portfolio as of March 31, 2017.

(ii) CreditAccess Grameen Limited IPO Business Model

a) Their main focus customer segment is women having an annual household income of ₹160,000 or less in Urban Areas and ₹100,000 or less in Rural Areas. They provide loans primarily under the joint liability group (“JLG”) model. Their primary focus is to provide income generation loans to their Customers, which comprised 86.81% of the total JLG loan portfolio, as of September 30, 2017.

b) They also provide other categories of loans such as Family welfare loans, Home improvement loans, and Emergency loans to their existing Customers.

c) In 2016, with a view to diversifying the product profile, they introduced individual Retail finance loans for those who were their Customers for at least three years. They offer these loans to customers to establish a new enterprise or expand an existing business in their individual capacity (for instance, for the purchase of inventories, machinery or two-wheelers).

(iii) CreditAccess Grameen Limited IPO Expansion Strategy

a) They followed a strategy of contiguous district based expansion across regions and, as of September 30, 2017, they cover 112 districts in the five states of Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh and Madhya Pradesh in India through 440 branches and 3,783 loan officers.

b) Their operations are well -diversified at the district level, with no single district contributing more than 5% to their Gross AUM (apart from one which contributed less than 6% to their Gross AUM) as of September 30, 2017.

c) The customer base increased from 0.50 million Active Customers as of March 31, 2014, to 1.61 million Active Customers as of September 30, 2017. The company has excellent Active Customer Retention Rate of 90%.
      

 

Objects of the CreditAccess Grameen Limited IPO:

Objective of CreditAccess Grameen Limited IPO are: (i) Offer for Sale The Promoters CreditAccess Asia N.V are selling 11,876,485 Equity Shares. (ii) Fresh  Fresh Issue Of Up To 14,928,910 Equity Shares Aggregating Up To ₹ 6300 Million By the Company.

CreditAccess Grameen Limited IPO Details:

Current GMP: 2.5-3.5
Open Date: Aug 08 2018
Close Date: Aug 10 2018
Total Shares: 26,805,394
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 1131.2 Cr.
Lot Size: 35 Shares
Issue Price: ₹ 418-422 Per Equity Share
Listing At: NSE,BSE
Listing Date: Aug 23 2018

Promoters And Management:

Promoters of CreditAccess Grameen Limited Company are:
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 microlending experience through its subsidiaries in four countries in Asia.  The Promoter holds 126,935,763 Equity Shares, equivalent to 99.00% of the pre-Offer issued.

Capital Structure:

(i) Authorized Share Capital 160,000,000 Equity shares at FV@10) 160 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (128,427,337 Equity Shares at FV@10) 128.427 Cr
(iii) Present Issue OFS to public (  11,876,485  Equity Shares at FV@10) 11.8765 Cr
(iv) Present Issue Fresh Shares (  14,928,910 Equity Shares at FV@10) 14.928 Cr
(v) Reservation for QIB  (13402697.5 Equity Shares at FV@10) 50%
(vi) Reservation for HNI  (4020809.25 Equity Shares at FV@10) 15%
(vii) Reservation for Retail  (9381888.25 Equity Shares at FV@10) 35%
(viii) Paid Up Share Capital after the issue 143.355 Cr

Financials of CreditAccess Grameen Limited IPO as per DRHP:

1. Assets and Liabilities Key Parameters
Year Asset(Cr) Liabilities(Cr) Net Worth(Cr) Book Value ROA
FY14 1,058.08 850.81 207.28 39 1.6%
FY15 1,726.81 1,350.41 376.40 52 2.8%
FY16 2,807.98 2,348.10 459.88 63 3.0%
FY17 3,564.07 2,873.28 690.80 81 2.3%
FY18 5,218.35 3,790.46 1,427.89 111 2.4%
Post Issue 2,057.89 144
2. Profit n Loss Key Parameters
Year Revenue(Cr) PAT(Cr) AUM(cr) NIM NPA(cr) Gross NPA  Shares( Cr)
FY14 147.83 16.626 809.52 10.51% 0.077 0.01% 5.29
FY15 281.43 48.732 1,447.07 12.33% 0.494 0.04% 7.29
FY16 466.72 83.241 2,538.78 12.48% 1.98 0.08% 7.29
FY17 709.26 80.298 3,075.44 13.72% 2.582 0.08% 8.56
FY18 875.21 124.64 4,974.66 12.70% 98.092 1.97% 12.84
Post Issue 14.27
 
3. Cash Flow Statement(all figures in Cr)
Particulars FY18 FY17 FY16 FY15 FY14
(i) Net Cash Generated from Operation -1,739.16 -424.79 -931.09 -698.42 -270.92
(ii) Net Cash Generated from Investment 53.545 -4.892 -3.946 -0.871 2.999
(iii) Net Cash Generated from Financing Activity 1483.539 579.10 934.36 597.41 489.70
(iv) Total[ (i)+(ii)+(iii) ] -202.08 149.42 -0.68 -101.88 221.79
Cash at the Start 332.11 182.68 183.36 285.24 63.457
Cash at the End 130.03 332.11 182.68 183.36 285.24
Key Note: 1.The Company AUM in the last 5 years is growing at CAGR of 62%[ Excellent Growth]. 2. The Company NIM in the last 5 years is steady around 12% [Excellent]. 3. The Revenue and PAT are growing at a CAGR of 55% and 66% respectively.[ Excellent] 4. The Rise of NPA from 2.5 Cr in FY17 to 98 Cr in FY18 is a cause of concern. The portion of society to whom the company lends loan was hit by Demonetization and GST. However, the effects are normalizing now. 5. The Valuation in term of P/B and P/E at 2.95x and 46x respectively looks stretched.

Comparison With Peers:

Company AUM(Cr) AUM CAGR Growth Borrowing Cost NIM ROA G.NPA CAR P/B P/E
BFI 12594    44% 9.30% 7.86% 3.95% 4.30% 33% 5.64 38
Satin Creditcare 5756    38% 12.56% 8.34% -ve 9.17 24% 2.37 -ve
Au SFB 16038    34% 8.40% 6.30% 1.70% 2.00% 19% 8.24 64
Ujjivan FS 7560    47% 10.60% 10.60% 0.10% 3.65% 23% 2.55 562
Shriram TF 95306    16% 9.00% 7.06% 1.64% 9.20% 17% 2.52 19
M&M FS 55000      - 8.10% 8.70% 1.90% 7.40% 22% 3.36 28
CreditAcess 4974    62% 11.31% 12.70% 2.38% 1.96% 29% 2.95 49
Note 1. The Financial of upto March 2018 has been taken. 2. Satin Creditcare Network is in losses on a consolidated basis. 3. The P/B and P/E are calculated based on Current Market Price as on 01.08.2018. 4. CAR= Capital Adequacy Ratio(>9% as per RBI Norm). 5. NIM= Net Interest Margin. 6. ROA= Return on Asset. 7. The Bharat Financial is merging with IndusInd Bank and AU Small Finance & Ujjivan has got the small bank license from RBI so comparison of Banks with NBFC( Creditgrameen ) is difficult as both have some advantage and disadvantages in the operation.

Recommendation on CreditAccess Grameen Limited IPO:

CreditAccess Grameen Limited IPO Rating by InvestorZone team = 6/10 1-5: Fair 5-7: Good 7-10: Excellent

Registrar of CreditAccess Grameen Limited IPO:

  1. Karvy Computershare Private Limited

Company Address:

CreditAccess Grameen Limited New No. 49 (Old No. 725), 46th Cross, 8th Block, Jayanagar, Next to Rajalakshmi Kalyan Mantap, Bangalore 560 071, Karnataka, India Phone No. +91 80 2263 7300 Fax No. +91 80 2664 3433 E-mail: csinvestors@grameenkoota.org Website: www.grameenkoota.org

Bid Details of CreditAccess Grameen Limited IPO as on
10-Aug-2018 19:30:00 IST

No.of shares offered No. of shares bid No. of total times
5,355,555 29,577,065 5.52
4,042,239 3,944,395 0.98
9,431,890 8,276,520 0.88
- - -
- - -
18,829,684 41,797,980 2.22
No.of shares offered No. of shares bid No. of total times
5,355,555 17,370,815 3.24
4,042,239 1,628,970 0.40
9,431,890 6,011,040 0.64
- - -
- - -
18,829,684 25,010,825 1.33
No.of shares offered No. of shares bid No. of total times
5,355,555 12,206,250 2.28
4,042,239 2,315,425 0.57
9,431,890 2,265,480 0.24
- - -
- - -
18,829,684 16,787,155 0.89

Discussion on CreditAccess Grameen Limited IPO:

    QIB- 5.52x, HNIs-.98x, Retail-0.82x
    After Spill over
    QIB-4.14x, HNIs-1x, Retail- 1x.
    Finally, with the support of QIBs, the issue sailed through.

    lull grey activity. Low subscription figure so far. Nothing much to entice. The issue might struggle to sail through.

    Ek investor ke dil ki baat—

    ज़िंदगी उस मुकाम पर हैं, कि अगर पहाड़ों की हसीन वादियों में भी जाकर जोर से पुकारे ……..

    “Smallcap”

    तो वापस सुनाई देगा
    ” बेच दे! बेच दे! बेच दे””

    😆😆🤣🤣😝😝

    Till now things are not looking rosy for CreditAcess Grameen IPO. Timid response from HNI and QIB. There are very fewer NBFCs in the market who are funding for this IPO. They should have kept the price low to attract investors interest. Just a small calculation to submit my view- The promoters are getting 11,876,485*422= 501 Cr in their pocket. Now suppose if the issue price was around 350, the net profit in their pocket would be 11,876,485*350=415 cr. So for just 50 Cr more profit, the company has stretched their valuation and lost the tag of investor-friendly company.

    Gmp of credit access Gramin GMP @14-15 Rs.
    Good company but valuation high so apply with risk.
    Note: if you want to loss 500 rs or earn 1000 rs. On listing you can apply.
    Investment in ipo are subject to market risk.

    Credit Access Grameen IPO Review

    (i) Credit Access Grameen is a MFI mainly focused on providing microloans to women in rural areas with an outstanding loan book of ~Rs 40 bn. with a high geographic concentration in a couple of states, asset quality risk looms high. More than 87% of loan book comes from 2 states – Karnataka (59%) and Maharashtra (27%).

    (ii) This is a significant risk to asset quality and to future earnings. On the growth front, company is delivering healthy performance but concentration exposure would act as an overhang on the valuations.

    (iii) Their Loan Ticket size is minimum Rs. 1000 and Maximum Rs. 18000.

    (iv) features of CreditAccess Grameen Koota IPO
    a) Sound Management
    b) Good Promotors Background
    c) No. 3rd In India in Microfinance Business
    d) NPA is around 0.08 from last 3 yrs.

    v) But At issue price, valuations are expensive when compared to peers. Thereby leaving little on the table for investors to make money on the issue.

    vi) The IPO is a combination of OFS and fresh issue of shares. The fresh issue of shares is of Rs 9bn and promoter is selling ~Rs 4.35 bn.

    Recommendations : Avoid for Listing Gain

    Brokers view on CreditAccess Grameen Limited IPO

    (i) Antique Broking

    Recommends ‘Avoid’.- Geographic concentration, lack of technology and people, and its inability to offer beyond joint lending group loans raise questions on long-term competitive positioning.
    Valuations do not leave investors with much margin of safety.

    (ii) Emkay Global

    Recommends ‘Avoid’- Valuations don’t justify adherent business risks and low returns on equity

    (iii) SMC Global

    Recommends ‘Subscribe’.-While 11.8 percent return on equity for 2017-18 is still sub-optimal compared to some of the large MFIs, the valuation adequately captures this and any improvement in the return on equity will aid further valuations.

    (iv) Prabhudas Lilladher

    Recommends ‘Subscribe’ for long term.-Expensive valuations and high business concentration risks are key deterrents
    Improvement of return on equity is crucial
    Listing gains may be limited.

    Wait for QIB to cross at least 25 times to have some substantial listing gain. We have already burnt finger in TCNS.

    The Company has issued total 8,041,617 number of shares to Anchor Investor which is close to 60% of QIB Quota.

    *CreditAccess Grameen IPO Review*

    Good one but I will avoid because:

    1. #3 player. I am already investing in #1 player (BharatFin)

    2. Valuations fully priced in. So no specific valuation advantage per se. Fair value levels.

    3. Focus mostly in Karnataka and Maharashtra. BharatFin has a wider reach.

    CreditAccess Grameen can be good for long term investor but I prefer BharatFin which when merged with IndusInd Bank will have a dual play of Banking + Microfinance.

    This message is in response to a review request by a group member and is done in good faith to the best of my knowledge. This should not be treated as a BUY / SELL / HOLD recommendation. Do you own analysis. Consult a financial advisor for further help an assistance. I am NOT SEBI Registered.

    Disclosure: Holding BharatFin. Listed in my tracking list.

    *View of Mr. Vijay Kittu*

      The listing would not be as great as pricing seems to be an issue. Always remember whenever OFS will be there pricing will always be high as promoters want to cash in everything in their pocket instead of passing to investors. The HDFC AMC IPO was also an OFS but they have left enough on the table for investors to earn. They would have easily priced IPO at 1500-1600 range and left meager for investors but HDFC is HDFC they always give priority to investors.

    There are almost 5000 companies in BSE… What is new in this IPO which is not present in the already listed companies

      First of all your comparison of Creditaccess Grameen Limited with 5000 companies listed in BSE is wrong. The 5000 companies listed in BSE are a combination of a different niche of different sectors which forms a part of an economy. The CreditAccess Grameen is a Microfinance Institution which lends loans to rural women and there 85% Revenue comes from two states Karnataka and Maharashtra. In India, we have around 56 ( listed + non-listed) MFIs and CreditAccess is the 4th largest among them. The Bharat Financial Inclusion is the no.1 MFIs in India but that too got merged with IndusInd Bank. So yeah if you have an interest in making an investment in MFIs sector , the CreditAccess is a good opportunity but at what price and valuation that can be a topic of debate.

    The Risk involved in the business of CreditGrameen is that in spite of having a presence in 5 states, the Karnataka and Maharashtra contributed the most in operational term. So any problem with these states may affect their operations.

    Kya idea h … Ye kitne multiply susbcribe hga retail me … And listing gain hga ya nahin ?
    Plz reply …

    The gross AUM has recorded at a CAGR of 57% to Rs 4974.66 crore end March 2018 from Rs 809.52 crore end March 2014. Disbursements across financing products have also registered a strong CAGR of 56% to Rs 6081.72 crore in FY2018 from Rs 1028.09 crore in FY2014. Over the years, *the company has maintained net NPA ratio at nil level.*

    CreditAccess Grameen is a Bengaluru-based leading micro-finance institution, focused on providing micro-loans to *women customers* predominantly in rural areas in India. It is the third largest NBFC-MFI in India by gross loan portfolio end March 2017.

    Can Minor open Trading and Demat account with broker for Delivery buy and sell not intra day through Guardian pl guide expert..which broker open

    Industry and Company Overview in terms of Market Share

    1. As on 31st March 2017, NBFC MFI segment has 56 players. The players have been classified as Large, Medium and Small based on the GLP of each company. Companies having GLP more than Rs. 500 crore are classified as Large players. Companies having GLP between Rs. 100 crore to Rs. 500 crore are classified as Medium players and Companies having GLP less than Rs. 100 crore are classified as Small players.

    2. As at March 31, 2017, Grameen Koota stood at 4th position among the 19 large MFIs (6th Position during the previous financial year). Grameen Koota held 6.56% share of total GLP of the NBFC-MFI segment (4.77% as at March 31, 2016) and occupied the 3rd position in overall disbursement with 7.26% share.

    3. Bharat Financials is the no.1 NBFC-MFI in India.

    Applying in an IPO, it is always advisable to understand the business model of the company. As we all know that this is an NBFC-MFI, so their business is to lend money and earn interest on it. So let us see in which category the company lends loans to their borrowers.

    1. Group Lending
    a) Income Generation Schemes– Income Generation Loans are offered to customers to establish a new enterprise or expand an existing business
    b) Emergency Loans– Emergency Loans are short-term loans provided to the customers to help them address emergencies and short-term cash flow constraints.
    c)Family Welfare Loans: Family Welfare Loans support all those activities of our customers that can help them in improving their quality of life. These loans fulfill genuine consumption needs such as educational needs of their children, cover medical expenses and cater to specific occasions such as festivals.
    d)Home Improvement Loans: Home Improvement Loans enable our customers to avail water connections, construct toilets, extend and improve their existing house.

    2. Retail Finance– Retail Finance is a new lending structure which is envisaged for graduated group lending customers who have higher entrepreneurial capacity. This is Grameen Koota’s attempt to develop individual credit products for loyal customers.

    Grameen Koota in 2016-17 has partnered with FinTech firm Artoo to develop a digital lending model to launch individual business loans. Grameen Koota’s Individual Lending vertical will be the first to be provided on a digital platform, right from loan origination to collections. Using Artoo’s Intelligent Digital Loan Origination System, borrowers will be informed about their loan approval status within 40 minutes by the loan officer.

    *Behind every Successful Investor, there is a IPO allotment.*

    If you are still not alloted , apply in next IPO till you get success.

      As per RBI, the NBFC-MFI can’t give loan amount exceeding ₹ 50,000 in the first cycle and ₹ 1,00,000 in subsequent cycles. So total indebtedness of the borrower does not exceed ₹ 1,00,000.

    Peer Comparison:
    Bharat Financial – Revenues ₹2102 crores, Net Profit ₹455 crores, P/BV 5.64, PE 26x, Market Cap ₹16922 crores.
    Equitas Holdings – Revenues ₹1767 crores, Net Profit ₹31 crores, P/BV 2.09, PE 151x, Market Cap ₹4751 crores.
    Ujjivan Financial – Revenues ₹1581 crores, Net Profit ₹7 crores, P/BV 2.60, PE 631x, Market Cap ₹4585 crores.
    Satin Creditcare -Revenues ₹1031 crores, Net Loss ₹3 crores, P/BV 1.60, PE NAx, Market Cap ₹1684 crores.
    Credit Access -Revenues ₹875 crores, Net Profit ₹124 crores, P/BV 2.94 after fresh issue of ₹630 crores, PE 48x on fully diluted capital of ₹143 crores, Market Cap ₹6050 crores.

      Equitas and Ujjivan have small finance bank licence. So direct comparison with these two company is not good.

        Plus Bharat Financial is already in the process of merging with IndusInd Bank and the Business Model of M&M finance and Shriram Transport is totally different from CreditAccess Grameen Limited IPO.

    Microfinance companies are quoting at good premium in the market.This issue should be no exception.It has shown consistent growth and poised to maintain it post issue. Professional management and reasonable valuation vs peers leaves scope for a listing gain.Good for long term.

    The Gross NPA Ratio was at 0.08% as of March 31, 2017, which increased to 1.97% as of March 31, 2018. The provision for non-performing assets also increased significantly from ₹2.58 Cr as of March 31, 2017, to ₹98 Cr as of March 31, 2018. The Net NPA Ratio which was 0.00% as of March 31, 2017, remained unchanged at 0.00% as of March 31, 2018, as the bad loan has been written off.

    Grey players are bit confused in gramin

    Sell kare to *HDFC* jesa na ho jaye aur buy kare to *TCNS* jesa na ho jaye

    CreditAccess Grameen Limited IPO
    PE 34
    RONE 8.73% (is very low)
    NAV 111.12 as on 31.3.18
    P/B 3.8 is little bit expensive.
    Only + point is multinational company backed by four asian institutional investors.
    Price is little bit high. How qib responds lets wait and see.
    Anyhow we will wait until last day to apply like bandhan ban

    The Net Interest Margin= Net Interest Income/ Gross Average AUM stands at 12.67% which is excellent.

    Figures as of 31st March 2018,

    i) The loan book= 40,25.052 Cr
    ii) The Active Customer= 3,190,54.3 cr
    iii) The Revenue from operations = 8,65.55 Cr
    iv) The Net Interest Income= 5,10.985 Cr
    v) The Gross NPA stands at 1.97%.

    I will not compare this IPO with Shriram Transport or M&M Financials. This company can be compared with Ujjivan or Equitas or Bharat financial and they have PE multiple of 627, 153 & 35.82 respectively.
    The issue is from angle of net profit comparison there is vast difference between each of them and this CreditAccess Grameen IPO. Ujjivan and Equitas has low profits as compared with CAG, whereas Bharat inclusion is much bigger from Net profit angle.

    Credit Access – P/BV 2.94 after fresh issue of ₹630 crores, PE 48x on fully diluted capital of ₹143 crores, Revenues ₹875 crores, Market Cap ₹6050 crores.

    Its NPA can rise very quickly in future. One should remain caution with such ipo.

    (i) The EPS post Issue would be= 8.61.
    (ii) The Book Value Post Issue would be =143
    (iii) The P/E on the cutoff Price of 422 would be =49
    (iv) The P/B on the cutoff price of 422 would be = 2.94

    CreditAccess Grameen IPO
    Credit Access Grameen Limited – Issue Size is ₹1131.19 crores
    QIB Portion 50% of the offer (13,042,697 – 13,474,128 Share)(Rs 563.22 Cr – Rs. 565.59 Cr)
    HNI Portion 15% of the offer (4,020,809 – 4,042,238 Share)(Rs 168.97 Cr – Rs. 169.68 Cr)
    Retail Portion 35% of the offer (9,381,888 – 9,431,889 Share)(Rs. 394.25 Cr – Rs. 395.92 Cr)
    Retail Application Size in CreditAccess Grameen IPO is 268,053 lots.

    GRAMEEN IPO – Financial Information (Basis of Valuation)

    EPS for FY14-15 >>> Rs.9.01 (Page #88 of DRHP)
    EPS for FY15-16 >>> Rs.11.23 (Page #88 of DRHP)
    EPS for FY16-17 >>> Rs.9.88 (Page #88 of DRHP)
    EPS for 6M17-18 >>> Rs.6.61 (Page #88 of DRHP)

    RoNW for FY14-15 >>> 12.98% (Page #89 of DRHP)
    RoNW for FY15-16 >>> 18.13% (Page #89 of DRHP)
    RoNW for FY16-17 >>> 11.63% (Page #89 of DRHP)
    RoNW for 6M17-18 >>> 07.50% (Page #89 of DRHP)

    NAV as on September 30, 2017 was Rs.89.34 (Page #89 of DRHP)

    Peer Group

    Bharat Financial Inclusion
    Satin Creditcare Network
    Au Small Finance Bank
    Ujjivan Financial Services
    Equitas Holdings
    Shriram Transport Finance Co.
    Mahindra & Mahindra Financial Services

      Equitas Holding, Ujjivan Financial Services, & AU Small Finance Bank have already given a small bank license so peer comparison with Grammen Koota bank will be futile.

    GRAMEEN IPO – Issue Information

    Issue Opens on: 08 Aug 2018
    Issue Closes on: 10 Aug 2018
    Issue Type: Book Built Issue IPO
    Issue Size: 2,68,05,394 Equity Shares
    Face Value: Rs 10 per Equity Share
    Issue Price: Rs.418 – Rs.422 per Equity Share
    Market Lot: 35 shares
    Listing At: NSE, BSE

    Equity Shares outstanding prior to the Issue = 12,82,13,837 Equity Shares
    Offer for Sale of 1,18,79,485 Equity Shares @422 = Rs.501.19 Crores
    Fresh Issue of 1,49,28,909 Equity Shares @422 = Rs.630 Crores
    Equity Shares outstanding after the Issue = 2,68,05,394 Equity Shares

    Category-wise Break up:.
    Anchor – 80,41,618 Shares = 339.36Crs
    QIB – 53,61,079 Shares = 226.24Crs
    NII – 40,20,809 Shares = 169.68Crs
    RII – 93,81,888 Shares = 395.92Crs (Lot size: 35 = 2,68,054 Forms)

    Total Issue – 2,68,05,394 Equity Shares = 1,131.19Crs.

    Subscription required for 1X
    RII = 2,68,054 Forms
    NII = 169.68Crs

    Interest cost @6%p.a. for 7days = 48.56paise for 1X

    Creditaccess grameen limited
    08-10 august
    Price Band 418-422
    Lot size 35
    Amount 14770
    Issue size 1131.19 crores
    For retail 268053 apps.

    *Credit Access gramin IPO*

    Micro-lender CreditAccess Grameen Ltd will be raising up to Rs 900 crore through an initial public offer (IPO) early next month. The Bengaluru-based microfinance institution (MFI), formerly known as Grameen Koota Financial Services Pvt Ltd, will be filing a Red Herring Prospectus (RHP) with the Securities Exchange Board of India (SEBI), its Chief Financial Officer B.R. Diwakar told BusinessLine.

    The Draft Red Herring Prospectus has already been approved by the regulator. The plan is to launch the issue in early August. The company proposes to sell up to 10.2 million shares of the company, which accounts for 7 per cent of the total paid-up capital, the CFO said.

    The funds will primarily be utilised as growth capital and will be used for lending.

    With a total outstanding portfolio of Rs 3,937 crore as on September 2017 (according to the DRHP filing), CreditAcecess Grameen now has 16.06 lakh active customers. Credit Access holds 99 per cent stake in the MFI, which operates in five states — Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh and Chhattisgarh.

    It has 440 branches in 112 districts with 5,267 employees. The capital to risk weighted assets ratio is at 29 per cent and 2.4 per cent net NPAs

    Tentative :

    Heard in the street that the Price Band will be in the range of 325-350 and lot size of 42 of the *Grameen Bank.*

    *Tentative Info on Forthcoming IPO*

    Company *Credit Access Grameen Limited*
    Date *8th to 10th Aug 18
    Size *1100 Crs*

      The Fresh Shares values at 900 Cr and promoters are selling 10,281,317 Equity Shares via OFS that means if Issue Size is 1100 Cr, the Promoters will get 200 Cr from the issue and 200 cr/10281317= 195. The Price band could between 190-200.

    How does a Grameen Koota ensure cost-effective funding for its lending business?

    The company has a diversified debt profile, such as term loans from banks, financial institutions, and non-banking financial companies, proceeds from loan assets assigned and securitized, proceeds from the issuance of NCDs to meet their funding requirements. Diversified portfolio enables them to optimize their cost of borrowings, funding and liquidity requirements, capital management and asset liability management

    Facts about Grameen Koota as on 6MFY18,

    i) The loan book= 39,36.968 Cr [ CAGR growth of 49.69 % from FY13 to 6MFY18]

    ii) The Active Customer= 1,606,205 [ CAGR growth of 35.85 % from FY13 to 6MFY18]

    iii) The Revenue from operations = 3,80.1 Cr [ CAGR growth of 34.42 % from FY13 to 6MFY18]

    iv) The Net Interest Income= 2,02.971 Cr [ CAGR growth of 35.21 % from FY13 to 6MFY18]

    v) The Gross NPA stands at 5.34% and Net NPA stands at 2.42% in 6MFY18 which is a considerable jump from 0.008% of Gross NPA and 0% of Net NPA last year.

      Price has not announced yet. As soon as it will be updated. We will put up here.

      No official announcement but Price band in the range of 325-350 and lot size is 45