CreditAccess Grameen maiden Non-Convertible Debentures lists on stock exchange

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·       Base Issue of Rs 250 crs oversubscribed by 3.03 times with a total collection of Rs 757.50 Crore

·       Retail category oversubscribed by 3.15 times with a collection of Rs 196.87 Crore

·       Most of the monies have been raised at an effective annual yield of 9.83% and 10.02% of Series I (24 months) and Series III (36 months) followed by Series V (60 months) i.e effective yield of 10.46% p.a

·       Issue opened on Monday, November 14, 2022 and closed on Thursday, November 17, 2022 with an option of early closure

November 25, 2022 (GNI): The Public Issue of secured, rated, listed, redeemable, maiden non-convertible debentures by CreditAccess Grameen Limited, a Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) offering collateral-free loans to women with an annual household income of Rs. 3,00,000 with the primary focus to provide income generation loans, listed on the National Stock Exchange today.

The issue was oversubscribed 3.03 times garnering Rs 757.50 crore. The NCD has a face value of Rs. 1,000 each. The base issue size is Rs. 250 crores with an option to retain oversubscription up to Rs. 250 crores, aggregating up to Rs. 500 crores, which is within the Shelf limit of Rs. 1,500 crores (“Tranche I Issue”).

According to the base issue size, the NCDs was subscribed 3.15 times in the retail category, 4.48 times in the Institutional category, 2.02 times in the Non-Institutional category, and 2.69 times in the HNI Category. The Issue opened on November 14, 2022 and closed on Thursday, November 17, 2022 with an option of early closure.

The issue saw a robust demand in the Institutional and Retail category of investors with a total collection of Rs 280 Crore, and Rs 196.87 crore respectively, while Non-Institutional and HNI category garnered Rs 176.75 crore and Rs 100.88 crore respectively.

This issue has tenure of 24 months, 36 months, and 60 months for secured NCDs with the series I, II, III, IV, V and VI. Effective yield (per annum) for NCD holders in Category I (Institutional Investors), Category II (Non-Institutional Investors) Category III (HNI Investors) and Category IV (Retail Individual Investors) holders ranges from 9.83% to 10.46%. Interest payments modes are Cumulative and Monthly. Amount on maturity for NCD holders in Category I, II, III, IV, V and VI ranges from Rs 1000/-to Rs 1644.91/-.

The NCDs proposed to be issued under the Issue have been rated AA-/Stable by India Ratings and Research Private Limited.

A. K. Capital Services Limited is the Lead Manager to the Tranche I Issue. Catalyst Trusteeship Limited is the Debenture Trustee and KFin Technologies Limited is the Registrar to the Tranche I Issue.

About CreditAccess Grameen Limited: CreditAccess Grameen Limited (“Company”) is India’s largest microfinance institution, headquartered in Bengaluru, Karnataka, and recognized by the Reserve Bank of India. CreditAccess Grameen led by T. Muniswamappa Trust commenced operations in May 1999 and subsequently, in 2007, the microfinance operations were transferred into an NBFC. The Company has assets under management (AUM) of Rs. 16,539.11 crore on a consolidated basis (including its subsidiary, Madura Micro Finance Limited (MMFL)), of September 30, 2022.

As of September 30, 2022, the Company’s footprint spans 14 states and 1 UT, powered by a network of 1,684 branches servicing approximately 37.98 customers. The Company has 15,667 full-time employees on a consolidated basis as of March 31, 2022. It also offers retail finance products to support the evolving needs of its existing customers. The promoter group, CreditAccess India N.V. held a 73.74% stake in the company at end-September 2022.

The Company’s consolidated gross stage 3 ratios (60-day non-performing asset recognition policy for group loans and 90-day recognition policy for retail finance) decreased to 3.65% at FYE22 from 4.45% at FYE21, while the net stage 3 ratio stood at 1.34% against 1.44% with a provision coverage ratio of 64.67%.

The Company’s consolidated revenue from operations stood at Rs. 2,742.82 crores for the fiscal 2022 and consolidated profit for the year was Rs. 357.10 crores. The consolidated profit rose from Rs. 131.40 crore for the fiscal ended March 31, 2021 to Rs. 357.10 crore for the fiscal ended 31 March 2022 and total assets for the fiscal ended 31 March 2021 stood at Rs. 15,060.23 crore to Rs. 17,394.75 crore for the fiscal ended 31 March 2022, on a consolidated basis.ends GNI SG