Illustration: Ajay Mohanty
Bengaluru-based CreditAccess Grameen's initial public offering (IPO) got a lukewarm response from investors with the offering garnering just 2.2 times subscription.
The institutional investor
portion of the IPO
was subscribed five times, while the wealthy and retail investor
remained unsubscribed. CreditAccess's IPO
comprises of fresh equity issuance worth Rs 6.3 billion and secondary share sale worth Rs 5 billion.
The price band
for the IPO
was Rs 418 to Rs 422 per share. At the top end of the price band, CreditAccess
will have post-issue market capitalisation
of Rs 60.5 billion.
was priced at nearly three times its 2017-18 book value (post-issue basis) and nearly 35 times its 2017-18 earnings. The IPO
closes on Friday.
"The near term looks great for Grameen, thanks to huge capital infusion and strong growth. However, the long term needs hard thinking - demonetisation has illustrated that even well run MFIs can lose 5 per cent to 10 per cent of assets in crisis," Antique Stock Broking
had said in a note advising its clients to 'avoid' the IPO.