CreditAccess Grameen shares list at Rs 385, 9% discount to IPO price

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Updated: August 23, 2018 10:30:15 AM

Shares of CreditAccess Grameen posted a muted debut, as the shares listed at Rs 385 on BSE, implying a discount of 9% as compared to the issue price of Rs 422 per share.

CreditAccess Grameen IPO was open between 8th and 10th August.

Shares of CreditAccess Grameen posted a muted debut, as the shares listed at Rs 385 on BSE, implying a discount of 9% as compared to the issue price of Rs 422 per share. Notably, the CreditAccess Grameen IPO was subscribed 2.17 times earlier this month, with investors bidding for 4.10 crore shares of the 1.88 crore on offer. Coming to the various categories, qualified institutional buyers bid for 5.52 times the shares offered to them, high networth individuals for 0.97 times and retail investors bid for 0.79 times of the shares offered.

CreditAccess Grameen IPO was open between 8th and 10th August. The price band was fixed between Rs 418-422.  The issue comprised 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 predominantly women in rural areas.

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Considering the prospects of the issue, Hem Securities had rated a “buy” on the IPO issue. “The company is bringing the issue at p/b multiple of 2.94 on post issue book value at higher end of price band of Rs 418-422/share. Although co has shown strong growth with CAGR of more than 50% from FY14 to FY18 in its financials added by solid fundamentals as some of the co’s ratios are one of the best in industry but low ROE which will dilute post listing is a concern. Hence, we rated issue a ‘Subscribe’ one with limited upside potential,” Hem Securities said in a report.

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