CreditAccess Grameen Limited NCD opens for subscription from 24 August 2023. the company aims for a base issue size of ₹1000 Crores.
About the company
CreditAccess Grameen Limited is a leading Indian micro-finance institution headquartered in Bengaluru. According to MFIN India, The company was the largest NBFC- MFI in India regarding the gross loan portfolio as of March 2023. The company’s customer-centric business model, wide range of product offerings, and well-designed product delivery and collection systems have enabled the company to achieve high customer retention rates and low credit costs.
The company focuses predominantly on customers in Rural areas in India, who largely lack access to the formal banking sector and present a latent opportunity for offering micro-loans. As of June 30, 2023, the company has a presence in 353 districts in 14 states (Karnataka, Maharashtra, Madhya Pradesh, Tamil Nadu, Kerala, Odisha, Chhattisgarh, Goa, Bihar, Jharkhand, Gujarat, Rajasthan, Uttar Pradesh, and West Bengal) and one union territory (Puducherry) in India through 1,826 branches and 17,391 employees, serving active consolidated customer base 44.2 lakhs, as of June 30, 2023.
Objectives of the Issue
- For onward lending, financing, and repayment of interest and principal of existing borrowings of the Company.
- General Corporate Purposes.
CreditAccess Grameen Limited NCD Details
| Issue Open | Aug 24, 2023 – Sep 6, 2023 |
| Security Name | CreditAccess Grameen Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 1,000.00 Crores |
| Issue Size (Shelf) | ₹ 1,500.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 for each NCD |
| Minimum Lot Size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | IND AA-/Stable |
| Tenor | 24, 33, and 60 months |
| Series | Series I to VIII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
Options and Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 |
|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 33 Months | 33 Months | 50 Months | 50 Months | 60 Months | 60 Months |
| Coupon (% per Annum) | 9.10% | NA | 9.25% | NA | 9.40% | NA | 9.70% | NA |
| Effective Yield (% per Annum) | 9.48% | 9.48% | 9.64% | 9.64% | 9.81% | 9.81% | 10.13% | 10.13% |
| Amount on Maturity (In Rs.) | ₹ 1,000.00 | ₹ 1,198.82 | ₹ 1,000.00 | ₹ 1,288.12 | ₹ 1,000.00 | ₹ 1,477.11 | ₹ 1,000.00 | ₹ 1,621.19 |
NCD Rating
The NCDs proposed to be issued under the Issue have been rated IND AA-/Stable for an amount of Rs 1500 Crores by India Ratings & Research Private Limited.
Company Financials
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 15,155.12 | 17,481.95 | 21,858.10 |
| Revenue | 2,466.07 | 2,750.13 | 3,550.79 |
| Profit After Tax | 131.40 | 353.07 | 826.06 |
NCD Allocation Ratio
Company Promoters
- CreditAccess India N.V.
NCD Lead Manager
- A.K. Capital Services Limited
NCD Registrar
Kfin Technologies Limited
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India – 500 032.
Phone: 04067162222, 04079611000
Email: cagl.ncdipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
Company Contact Details
CreditAccess Grameen Limited
New No. 49 (Old No. 725), 46th Cross, 8th Block,
Jayanagar, Rajalakshmi Kalyana Mantap
Bengaluru 560 071, Karnataka
Phone: +91 80 2263 7300
Email: csinvestors@cagrameen.in
Website: https://www.creditaccessgrameen.in/
Final Thoughts
Non-Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in CreditAccess Grameen Limited NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
