- CreditAccess Grameen Limited is Bengaluru based company engaged in providing micro-loans to women in Rural Areas in India. Incorporated in 1991, But actually, Grameen Koota was founded in May 1999 as a project under the T. Muniswamappa Trust (TMT), an NGO in Bangalore.
- As of March 31, 2018, This operates across the eight states of Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Odisha, Kerala, Goa and one union territory of Puducherry through 516 branches and 4,544 loan officers.
- India's 3rd Largest NBFC-MFA
- 2nd Largest Rural-focused NBFC-NFI
IPO Details:
Security symbol
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:
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CREDITACC
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Company Name
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:
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CreditAccess Grameen Limited
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Issue size
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:
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Fresh Issue upto Rs. 630 Cr and
OFS : Rs 501 Cr
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Face Value
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:
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Rs 10
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Price Range
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Rs 418 to Rs 422
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Lot size
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:
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35 Equity Shares and in multiples thereof
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Minimum Order Size
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:
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35 Equity Shares and in multiples thereof
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Bidding Period
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:
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08-Aug-2018 to 10-Aug-2018
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ANALYSIS SUMMARY:
RISK FACTORS:
- Microfinance loans are unsecured
- An increase NPA: 2.5 Cr to 98 Cr
- Unable to manage our growth effectively
- Sahayata Microfinance Private Limited ("Sahayata"),
- (a) accounting malpractices, : fake expenses, fake loans and fictitious transactions and fake transactions
- (b) failure of internal controls,
- (c) poor quality and lack of independence of internal audit;
- (d) lack of any review over expenditure ;
- (e) concealing of NPAs including forgery of supporting
- (f) poor post-sanction supervision of loans,
- Competition from banks and financial institutions, as well as state-sponsored social programs, may adversely affect our profitability
- Trademark registration not done
- CAA has invested in other companies engaged in similar businesses as our Company
- Risks Relating to India: Indian economy is undergoing many changes
What is +ve in this company:
- Honest Management
- strong fundamentals
- Management has very strong Banking Experiences
Financial:
The following table sets forth our key financial and operational metrics as of or for the periods indicated:
(₹ in millions, except percentages and number of Total Active Loan Accounts)
As of/ for the
| March 31, 2018 | March 31, 2017 | March 31, 2016 | March 31, 2015 | March 31, 2014 | |
| Net Interest Income | 5,109.85 | 3,852.04 | 2,487.04 | 1,391.06 | 700.83 |
| Profit after tax | 1,246.41 | 802.98 | 832.41 | 487.32 | 166.26 |
| Gross NPA | 980.92 | 25.82 | 19.80 | 4.94 | 0.77 |
| Gross NPA Ratio | 1.97% | 0.08% | 0.08% | 0.04% | 0.01% |
Opinion:
- Avoid for listing gains
- Only High-risk investors apply for very long-term
Finalisation of Basis of Allotment :
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Aug 16, 2018
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Initiation of refunds :
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Aug 20, 2018
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Credit of Equity Shares to demat accounts :
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Aug 21, 2018
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Commencement of trading :
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Aug 23, 2018
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GMP:
GMP :
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35
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