CreditAccess Grameen IPO – Company Profile, Price Band, Analysis
CreditAccess Grameen Limited – a leading micro-finance institution in India is, planning to raise INR 1126 – 1131 Cr via initial public offer (IPO) [Fresh Issue (INR 630 Cr) and Offer for Sale (INR 501 Cr)]
CreditAccess Grameen Ltd – Company Profile
CreditAccess Grameen Limited (formerly known as Grameen Koota Financial Services Pvt. Ltd.) was born out of the need for timely and affordable credit to India’s poor and low-income households.
Incorporated in the year 1991, this Bengaluru based company is engaged in providing micro-loans to women in Rural Areas in India.
Grameen Koota was founded as a project under the T. Muniswamappa Trust (TMT), an NGO in South Bangalore. Grameen Trust, Bangladesh, provided seed capital funding to TMT to replicate the Grameen Bank Bangladesh microfinance model.
CreditAccess Grameen’s Financial Services Include:
Microcredit:
This includes (1) Income Generation Loan, (2) Family Welfare Loan, (3) Emergency Loan and, (4) Home Improvement Loan.
- Income Generation Loans are offered to establish a new enterprise or expand an existing business.
- Family Welfare Loans support activities that improve the quality of life. These loans are disbursed for education needs, medical needs, lifestyle improvement products (solar lights, cook stoves, etc), celebration of festivals and livelihood improvement expenses.
- Emergency Loan aims to address short-term cash flow constraints of customers. The loan may be used to pay utility bills, for medical emergencies or to purchase ration.
- Home Improvement Loans fund home repairs including extending or adding rooms, constructing toilets, availing water connections and rain-proofing homes.
- CreditAccess Grameen focus customer segment is women having an annual household income of INR 1,60,000 or less in Urban Areas and INR 1,00,000 or less in Rural Areas. It provides loans primarily under the joint liability group (JLG) model.
Pension:
- As an aggregator of the National Pension Scheme (NPS) of the Government of India, Grameen Koota collects contributions from the customer’s doorstep to encourage them to enroll in the Pension Scheme.
- Customers have to contribute a minimum of INR 1,000 and a maximum of INR 12,000 in a year to become eligible for the Swavalamban benefit of INR 1,000 from the Government of India.
The Company’s non-financial services consist of training, education and awareness creation programs promotion of financial literacy; basic health/nutrition education; basic medical services; special medical services for women and children; women’s rights/gender issues education.
Company Reach
- Presently the company covers 132 districts in the 8 states (Chhattisgarh, Goa, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Odisha, Tamil Nadu,) and Puducherry.
- The Company’s has a network of 516 branches and 4,544 loan officers.
Awards and Recognition
2017: SKOCH Resilient India Award 2017
2017: ISC FICCI 2017 Award for Best Financial Accessibility for Sanitation
2016: MIX Social Performance Recognition 2015
2015: Industry’s top honour “Microfinance Organization of the Year 2015” in the ‘Large MFI’ category
2013: SKOCH Financial Inclusion Award 2013
2012: Silver Microfinance Information Exchange (“MIX”) Social Performance Reporting Award
2011: Silver MIX Social Performance Reporting Award
2011: Hanson Wade Asia Microfinance Recognition Award (Successful product innovation for Water and Sanitation Loan)
2010: Hanson Wade Asia Microfinance Recognition Award (Social and Financial Transparency)
2008: Growth Recognition Award from Unitus on reaching 2 lakh poor and low-income households
2008: Microfinance Process Excellence Award (MPEA) by PlaNet Finance and RBS Group
2007: Microfinance Pioneer Award from Grameen Foundation, USA
2006: Microfinance Process Excellence Award (MPEA): National Winner – by PlaNet Finance & ABN AMRO
2005: Microfinance Process Excellence Award (MPEA) by PlaNet Finance and ABN AMRO
Company Promoters
The promoter of the company is CreditAccess Asia N.V. (CAA)
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
CreditAccess Grameen – Financial Performance
Revenues
CreditAccess Grameen Limited shows a steady revenue growth in last 5 years. Top-line has been increasing regularly for the last five years and jumped from INR 89 Cr in FY 2013 to INR 709 Cr for the period ended FY 2017. (INR 385.51 Cr till Sept 2017)
Profits
Though the company has shown a steady growth in revenue, the company has also registered growth in profits in these five years. Starting from INR 7.9 Cr of profits in FY 2013, the company’s earnings improved to INR 80.3 Cr for the period ended FY 2017. (INR 80.7 Cr till Sept 2017)
CONCLUSION –
Considering company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings (keeping a long-term view in mind) on CreditAccess Grameen Limited IPO
Also Read –
1) Finblab’s Valuepick Stock for the month of July 2018 – CEAT Limited (10.67% Returns in 1 month)
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