26-Oct-2023
2 mins read
CreditAccess Grameen, headquartered in Bengaluru, has announced the opening of its second tranche of redeemable Non-Convertible Debentures (NCD) for subscription on Thursday, August 24. As per the company’s disclosure to the stock exchanges, they are offering a coupon rate of up to 9.70% annually, translating to an effective yield of up to 10.13% per annum. The subscription window will close on September 6, 2023.
The core offering of the NCD stands at Rs 400 crore. However, the company has provisioned for potential oversubscription, allowing them to retain up to Rs 600 crore, summing up the total to Rs 1,000 crore. As described by the Non-Banking Financial Company (NBFC) in its documents, the NCD is of a secured, rated, listed, and redeemable nature.
The said NCD, boasting an IND AA-/Stable rating, is intended to be listed on both BSE and NSE. Notably, CreditAccess Grameen had managed to raise Rs 500 crore from its November 2022 first tranche, which garnered an impressive 3.03 times subscription over its base size.
Furthermore, the company, having a market cap surpassing Rs 21,500 crore, plans to roll out seven different series of NCDs. The tenure breakdown is as follows: 24 months for Series I & II; 33 months for Series III & IV; 50 months for Series V & VI; and 60 months for Series VI & VII.
About CreditAccess Grameen Limited
Headquartered in Bengaluru, CreditAccess Grameen Limited stands as a prominent micro-finance institution in India. As per data from MFIN India, by March 2023, the organization had ascended to the top spot amongst NBFC-MFIs in India, judging by its gross loan portfolio.
The institution has carved its niche by tailoring a customer-focused approach combined with a diverse product spectrum and efficient systems for product delivery and collections. These strategic moves have ensured they maintain impressive customer loyalty and minimal credit expenses.
Primarily, CreditAccess Grameen directs its services towards rural inhabitants in India, many of whom are disconnected from the formal banking channels. This creates a ripe avenue for the company to provide micro-loans to this demographic.
Fast forward to June 30, 2023, the company’s footprint spans 353 districts across 14 Indian states – encompassing Karnataka, Maharashtra, Madhya Pradesh, Tamil Nadu, Kerala, and several others – and extends to the union territory of Puducherry. This vast network operates through 1,826 branch offices, supported by a workforce of 17,391 employees. They have successfully catered to a consolidated customer base of approximately 44.2 lakhs as of that date.
Financial Performance of CreditAccess Grameen Limited (In Crore)
| Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 |
| Assets | 15,155.12 | 17,481.95 | 21,858.10 |
| Revenue | 2,466.07 | 2,750.13 | 3,550.79 |
| Profit After Tax | 131.4 | 353.07 | 826.06 |
Important Details of CreditAccess Grameen Limited Buyback
| 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) | Rs 1,000.00 Crores |
| Issue Size (Shelf) | Rs 1,500.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 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 |
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) | Rs 1,000 | Rs 1,198.82 | Rs 1,000 | Rs 1,288.12 | Rs 1,000 | Rs 1,477.11 | Rs 1,000 | Rs 1,621.19 |
NCD Rating of CreditAccess Grameen Limited NCD
The NCDs slated for issuance in this offering have received an IND AA-/Stable rating from India Ratings & Research Private Limited, covering an amount of Rs 1500 Crores.
Company Promoters
The promoter of the company is CreditAccess India N.V.
The Objective of CreditAccess Grameen Limited NCD
The Tranche II Issue’s objectives encompass utilizing the net proceeds for purposes such as advancing further loans, managing the financing, and settling both the interest and principal of the company’s current debts. Additionally, the funds will be allocated for various general corporate activities.
Lead Manager of CreditAccess Grameen Limited NCD
The lead manager for CreditAccess Grameen Limited NCD os AK Capital Services Limited.
How to Apply for CreditAccess Grameen Limited NCD
Wait for the NCD to open for subscription, then click on this link to apply for the CreditAccess Grameen Limited NCD with Bigul https://ncd.bonanzaonline.com/.
How to Check Allotment Status of CreditAccess Grameen Limited NCD
The registrar for CreditAccess Grameen Limited NCD is KFin Technologies Limited. To check your allotment status, please click on this link https://karisma.kfintech.com/
FAQs
- What is CreditAccess Grameen Limited NCD?
CreditAccess Grameen Limited NCD is a Non-Convertible Debenture offering by the Bengaluru-based micro-finance institution. NCDs are debt instruments that can’t be converted into shares and usually offer higher interest than convertible debentures.
- When is the NCD open for subscription?
The subscription window for the NCD opens on August 24, 2023, and will close on September 6, 2023.
- What is the coupon rate for this NCD?
The coupon rate offered is up to 9.70% annually, with an effective yield of up to 10.13% per annum.
- How much is the company aiming to raise from this NCD?
The core offering is Rs 400 crore, with provisions to retain oversubscription up to Rs 600 crore, totaling up to Rs 1,000 crore.
- On which stock exchanges will the NCD be listed?
The NCD will be listed on both BSE and NSE.
- What is the credit rating for this NCD?
The NCD has received an IND AA-/Stable rating from India Ratings & Research Private Limited.
- Who is the promoter of CreditAccess Grameen Limited?
The promoter of the company is CreditAccess India N.V.
- What is the objective of this NCD?
The main objectives include using the net proceeds for onward lending, managing financing, repayment of existing borrowings, and various general corporate purposes.
- Who is the lead manager for this NCD?
AK Capital Services Limited is the lead manager for CreditAccess Grameen Limited NCD.
- How can I apply for the NCD?
You can apply for the NCD once it’s open for subscription by visiting the provided link: https://ncd.bonanzaonline.com/.
- How can I check the allotment status?
The registrar for this NCD is KFin Technologies Limited. You can check your allotment status at: https://karisma.kfintech.com/.
- Are there different series for this NCD?
Yes, the company intends to roll out seven different series of NCDs with varying tenures and coupon rates.
- Who is the debenture trustee for this NCD?
Catalyst Trusteeship Limited is the debenture trustee for this NCD.
- What’s the minimum lot size for subscribing to this NCD?
The minimum lot size for subscription is 10 NCDs.
- Is there a specific order of allotment?
The basis of allotment is on a ‘First Come First Serve’ principle.