CreditAccess Grameen lists 8.8% below issue price

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New Delhi | Published: August 24, 2018 2:19:24 AM

Microfinance company CreditAccess Grameen on Thursday made a tepid debut on bourses, with the stock falling over 8% from the issue price of Rs 422.

stock market, stocksThe stock debuted at Rs 385, 8.76% lower than its issue price of `422 on the BSE. It finally settled at Rs 420.80, 0.28% down over its issue price.

Microfinance company CreditAccess Grameen on Thursday made a tepid debut on bourses, with the stock falling over 8% from the issue price of Rs 422.

The stock debuted at Rs 385, 8.76% lower than its issue price of `422 on the BSE. It finally settled at Rs 420.80, 0.28% down over its issue price.

On the NSE, the scrip got listed at Rs 390, which is a 7.6% discount from the issue price. In the intra-day trade, the stock had touched a high of Rs 426.90 and a low of `385 and finally ended the trading session at `418.
The initial public offering (IPO) of CreditAccess Grameen, which closed on August 10, was subscribed 2.17 times. The issue had received bids for 4.10 crore shares against the 1.88 crore shares offered. The qualified institutional buyers quota was subscribed 5.52 times, HNI 0.97 times and retail individual investors 0.79 times.

The company had set a price band of Rs 418 to Rs 422 per share for its IPO. The company had alloted `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.

The issue consisted of a fresh issue of shares for up to Rs 630 crore and an offer for sale (OFS) of `501.18 crore. CreditAccess Grameen 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 districts 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.

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