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CreditAccess Grameen’s IPO to Open from August 8

CreditAccess Grameen Limited (CAGL), a leading Indian micro-finance institution headquartered in Bangalore, focused on providing micro-loans to women customers, covers 132 districts in the eight states and one union territory, with 516 branches. CAGL proposes to make a fresh issue of equity shares aggregating up to Rs 630 crore and an offer for sale of up to 11,876,485 equity shares by the promoter, CreditAccess Asia NV. CAGL’s initial public offer (IPO) will be open for subscription between August 8 and August 10. The price band for the issue is Rs 418 to Rs 422 per share. For the year ended 2017-18, CreditAccess reported net profit of Rs1.25 billion on revenues of Rs 87.5 billion.
Udaya Kumar, MD & CEO, says: “81% of our customers are in rural areas, against industry average of 38%. We have 3.2 mn active loan accounts. 6,32,606 new borrowers have been added in FY2017-18, taking the total borrowers to 18,51,324 as of March 31, 2018. 82% of our branches have been catering to rural markets. We have calibrated, contiguous district based expansion strategy. It has been delivering superior customer service, resulting in high customer retention, which is 84%. The funds from the IPO will primarily be used as growth capital and will be utilised for further lending.”
CAGL has Joint Liability Group (JLG) based lending, wherein credit bureau check is made prior to every sanction and every new client acquisition. CAGL has a wide product suite catering to entire customer life cycle.

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