CreditAccess Grameen Raises ~INR 989.58 crore via Public Issue of NCDs

CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770, 'CA Grameen'), the country's largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) has successfully raised INR 989.58 crore through public issue of secured, redeemable Non-Convertible Debentures (NCDs). The NCDs are listed on both the National Stock Exchange of India Ltd (NSE) and the Bombay Stock Exchange (BSE).

The NCD Tranche II Issue had a base issue size of INR 400 crore with an option to retain oversubscription up to INR 600 crore aggregating up to INR 1,000 crore, which is within the shelf limit of INR 1,500 crore. The NCDs are rated IND AA-/Stable by India Ratings and Research Private Limited.

The NCD Tranche II Issue opened for subscription on Thursday, August 24, 2023, and had an early closure on Friday, September 01, 2023. The Tranche II Issue received a subscription of about INR 1,012 crore (2.53x of the Base Issue size) as per the consolidated bid details on the stock exchange platforms. The Company exercised the option to retain oversubscription and allocated 98,95,794 NCDs of the face value of INR 1,000 each to valid applications aggregating to INR 989.58 crore.

Considering the valid applications, the issue witnessed a subscription of 2.47x of the base issue size of INR 400 crore wherein the subscription of i) institutional category (25% portion) was 2.50x, ii) non-institutional (30% portion) was 2.68x, iii) HNI category (20% portion) was 2.14x and iv) retail category (25% portion) was 2.46x.

The issue saw interest from investors across series and tenures offering monthly and cumulative interest options with the effective yield ranging from 9.48% to 10.13% per annum.

Commenting on the successful issue, Mr. Udaya Kumar Hebbar, Managing Director, CreditAccess Grameen Ltd. said, "We are pleased to witness another successful raising of domestic funds through the public NCD route. This demonstrates the confidence of various investors in our unique business model, aiming to advance the financial inclusion agenda across rural India. The issue aligns with our liability strategy which focuses on diversification in funding sources and higher share of longer tenure funds, leading to positive ALM mismatch and stronger liquidity position."

Shares of CREDITACCESS GRAMEEN LIMITED was last trading in BSE at Rs. 1431.60 as compared to the previous close of Rs. 1442.40. The total number of shares traded during the day was 13223 in over 1424 trades.

The stock hit an intraday high of Rs. 1465.00 and intraday low of 1425.25. The net turnover during the day was Rs. 18976376.00.

Source : Equity Bulls

Keywords

CREDITACCESSGRAMEEN INE741K01010 FundRaising NCDs PublicIssue