Creditaccess Grameen Limited NCD Comapny Profile:
Creditaccess Grameen Limited is a leading Indian micro-finance institution headquartered in Bengaluru, focused on providing joint liability group loans and micro-loans primarily to women customers predominantly in rural areas in India. According to MFIN India, the company was the largest NBFC-MFI in India in terms of the gross loan portfolio as of March 2023. The company offers a diverse suite of lending products that cater to the critical needs of the customers throughout their life cycle and includes income generation, health care, education, festival celebration, home improvement, water, and sanitation. The customer-centric business model, a wide range of product offerings, as well as our well-designed product delivery and collection systems, have enabled the company to achieve high customer retention rates and low credit costs.
Creditaccess Grameen Limited is coming up with a public issue by the company of secured, redeemable, non-convertible debentures of face value ₹ 1,000 each (“NCDs” or “debentures”), for an amount up to ₹400 crores (“base issue size”) with an option to retain oversubscription up to ₹600 crores, aggregating up to ₹1,000 crores is being offered by way of this tranche II prospectus. The issue opens for subscription on Monday, 24th August 2023, and will close on or before Friday, 6th August 2023. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs
Creditaccess Grameen Limited NCD
Application Form Download
Creditaccess Grameen Limited NCD Details:
| Tranche II Issue opens: | Thursday, 24th August 2023 | ||||
| Tranche II Issue closes: | Wednesday , 6th September 2023 | ||||
| Allotment: | First Come First Serve Basis | ||||
| Face Value: | ₹ 1,000 per NCD | ||||
| Nature of Instrument: | Secured Redeemable Non-Convertible Debentures | ||||
| Minimum Application: | 10 NCDs (₹ 10, 000) & in multiple of 1NCD | ||||
| Listing: | BSE & NSE | ||||
| Credit Rating: | The NCDs proposed to be issued under the Issue have been rated [IND AA-/Stable] for an amount of ₹ 1,500 crores by India Ratings vide their rating letter dated August 04, 2022 and further revalidated vide letter dated September 8, 2022 and further affirmed vide letter dated April 24, 2023 | ||||
| Tranche II Issue Size: | Public issue by CreditAccess Grameen Limited (“the Company”) of NCDs for an amount of ₹ 400 Cr (“Base Issue Size”), with an option to retain over-subscription up to ₹ 600 Cr aggregating up to ₹ 1000 Cr . | ||||
| Registrar: | KFIN Technologies Limited | ||||
| Category | I – Institutional (“QIB”) | II – Non-Institutional (“Corporates”) | III – High Net worth
Individual (“HNI”) (Amount aggregating to above ₹ 10 lakh) |
IV – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh) | |
| Category Allocation of the Overall Issue Size | 25% | 30% | 20% | 25% | |
| Bucket Size (₹) assuming Issue size of ₹ 1000 Cr₹ | ₹ 250 Cr | ₹ 300 Cr | ₹ 200 Cr | ₹ 250 Cr | |
Specific Terms of the Prospectus:
The terms of the NCDs offered under the Issue are as follows:
| Series | I | II | III | IV* | V | VI | VII | VIII |
| In multiples of thereafter | ₹ 1,000 (1 NCD) | |||||||
| Face Value/ Issue Price of NCDs (₹/ NCD) | ₹ 1,000 | |||||||
| Tenor | 24 months | 24 months | 36 months | 36 months | 50 months | 50 months | 60 months | 60 months |
| Coupon (% per annum) for NCD Holders in Category I, II, III & IV | 9.10% | NA | 9.25% | NA | 9.40% | NA | 9.70% | NA |
| Effective Yield (per annum) for NCD Holders in Category I, II, III & IV | 9.48% | 9.48% | 9.64% | 9.64% | 9.81% | 9.81% | 10.13% | 10.13% |
| Mode of Interest Payment | Through various modes available | |||||||
| Amount (₹ / NCD) on Maturity for NCD Holders in Category I, II, III & IV | ₹ 1,000 | ₹ 1,198.82 | ₹ 1,000 | ₹ ₹1,288.12 | ₹ 1,000 | ₹ 1,477.11 | ₹ 1,000 | ₹1,621.19 |
| Maturity / Redemption Date (from the Deemed Date of Allotment) | 24 months | 24 months | 36 months | 36 months | 50 months | 50 months | 60 months | 60 months |
*- The Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
Conclusion:
CA Grameen has a well-established large franchise, with an operational history of over two decades. The company is the largest NBFC-MFI in India, with assets under management (AUM) of INR 218 billion and a borrower base of 4.42 million, on a consolidated basis (including its subsidiary, Madura Micro Finance Limited (MMFL)), at FYE22. The NCD has been rated as IND AA-/Stable for an amount of ₹ 1,500 crores by India Ratings & Research. Instruments with this rating are considered to have a high degree of safety regarding the timely servicing of financial obligations. It could be a good deal for an investor looking for a regular income. For any queries related to the NCD, you may consult the team at Elite Wealth. Since Demat is mandatory for investing in this particular NCD from NHIT, the investor must open a Demat account with a trusted broker like Elite Wealth.