Hot Stock: This microfinance company raises Rs 9,89,58,00,000 via public issue; scrip jumps over 4 per cent!

The stock gave multibagger returns of 115 per cent in 2 years and over 280 per cent in 5 years.

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 Rs 9,89,58,00,000 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 Rs 400 crore with an option to retain oversubscription up to Rs 600 crore aggregating up to Rs 1,000 crore, which is within the shelf limit of Rs 1,500 crore.

The NCD Tranche II Issue, which opened for subscription on August 24, 2023, was oversubscribed by 2.53 times. The company received bids worth Rs 1,012 crore, of which Rs 9,89,58,00,000 was allocated to valid applications. The issue was subscribed 2.47 times the base issue size of Rs 400 crore, with the institutional, non-institutional, HNI, and retail categories being subscribed 2.50x, 2.68x, 2.14x, and 2.46x, respectively. The issue offered monthly and cumulative interest options with an effective yield ranging from 9.48 per cent to 10.13 per cent 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.”

On Monday, shares of CreditAccess Grameen Ltd surged 4.23 per cent to an intraday high of Rs 1,492.2 per share from its previous closing of Rs 1,431.60. The stock’s 52-week high is Rs 1,502.3 and its 52-week low is Rs 834.1. The company has a market cap of Rs 22,900 crore and has delivered good profit growth of 31.2 per cent CAGR over the last 5 years.

The stock gave multibagger returns of 115 per cent in 2 years and over 280 per cent in 5 years. Investors should keep an eye on this Mid-Cap stock.  

Disclaimer: The article is for informational purposes only and not investment advice.