The initial public offering (IPO) of microfinance firm CreditAccess Grameen was subscribed by 0.25 times on Wednesday, the first day of the share sale, with investors bidding for 47.83 lakh shares of the 1.88 crore offered to them. Qualified institutional buyers bid for 0.68 times the shares offered to them, while high networth individuals bid for 0.01 times of their allocation and retail investors bid for 0.11 times.
On Tuesday, the company allotted Rs 339.36 crore to 23 anchor investors at Rs 422 per equity share. Some of the anchor investors include Neuberger German Emerging Markets Equity Fund, ICICI Prudential Banking and Financial Services Fund, Sundaram Mutual Fund, HDFC Standard Life Insurance Company,Citigroup Global Markets and Bajaj Allianz Life Insurance Company.
CreditAccess Grameen had set a price band of Rs 418-422 per share for its IPO. The issue consists a fresh issue of shares for up to Rs 630 crore and an offer for sale (OFS) of Rs 501.18 crore. CreditAccess Grameen Limited is an Indian micro-finance institution focussed on providing micro-loans to women, predominantly in rural areas.
It has followed a strategy of contiguous district-based expansion across 132 district in eight states. Those states include Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Odisha, Kerala and Goa in addition to one union territory Puducherry. The company’s promoter is Credit Access Asia NV, a multinational company specialising in micro and small enterprise financing.