Shares of Credit Access Grameen Limited listed on the bourses and had a poor opening. Shares were issued at Rs 422 and debuted at Rs 385 on the BSE and Rs 390 on the NSE. They did recover from there and manage to close around the issue price.
The company had launched its simultaneous offer for sale and fresh offer. The issue consisted of a fresh issue of Rs 630 crs and an offer for sale of 1,18,76,485 shares in a price band of Rs 418 to 422. The company had raised Rs 1,131.18 crs at the top end of the band.
The company had allotted 80,41,617 shares to 20 anchor investors comprising of 23 entities. The top allocation was made to Neuberger Berman Emerging Markets Equity Fund who was allotted 10,66,345 equity shares or 13.26% of the equity.
The issue was subscribed 2.22 times with QIB portion subscribed 5.52 times, HNI 0.98 times and retail 0.88 times. The issue was under pressure during subscription and the fact that this company though being a microfinance company yet not into a small finance bank, was not understood and not appreciated either. The costs involved with converting a micro finance company business into a bank are tremendous and have a telling impact on the initial three to four years of a company’s performance.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 385.00 | 423.30 | 385.00 | 420.80 | -1.20 | -0.28 | 412.92 | 1983509 | 736053 | 37.11 |
| NSE | 390.00 | 426.90 | 385.00 | 422.05 | 0.05 | 0.01 | 412.42 | 11600387 | 3621075 | 31.22 |
| Total | 13583896 | 4357128 | 32.08 |
Coming to the listing itself, post the discovered price the share began its climb towards the issue price and made a high of Rs 423.30 on the BSE and Rs 426.90 on the NSE. The traded volume was 135.83 lacs combined on the two exchanges. Weighted average of the day was Rs 412.92 on the BSE and Rs 412.42 on the NSE, signifying that the recovery from the opening discovered price was swift and the bulk of the day’s trade happened at higher prices.
Delivery was 43.57 lac shares which was 32.08% of the traded volume. If one considers the traded volume as a percentage of the IPO size it was 50.68%. The delivery as a percentage of the IPO size was 16.25% and based on non-anchor portion was 23.22%. This is a low percentage and because there were no names reported on the institutional side either as buyers or sellers, indicates that the share would need to consolidate at current levels before any up move could be expected.
For the record, the share closed at Rs 420.80, down Rs 1.20 or 0.28% on the BSE and at Rs 422.05, up Rs 0.05 or 0.01% on the NSE. The share effectively did nothing and at best could be classified as an average listing. One needs to se how the share fares in the coming days and what its June results have in store for the market.
