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APAC IPOs & Placements

Zhen Zhou, Toh

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CreditAccess Grameen Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/26748" target="_blank" data-smartkarma-citation="entities:26748:1">CreditAccess Grameen (1574131D IN)</a> (CAG) is raising about INR11,000m in its upcoming IPO. The IPO comprises the sale of about 11.8m shares of the company by CreditAccess Asia N V. and a fresh issue of approximately 15m shares worth INR6,300m.
The company's higher margins compared to peers, good profitability, larger average ticket size, and decent track record should warrant it trade well post-IPO, but, peer comparison suggests that CAG is priced at fairly expensive valuation and only represents a 6 - 7% potential upside.
In this insight, we will provide an update on the latest financial and operating metrics to judge how the company has performed in FY2018. We will also compare the company's valuation with other India-listed microfinance institutes. Last, but not least, we will run the IPO through our framework.

CreditAccess Grameen (1574131D IN) (CAG) is raising about INR11,000m in its upcoming IPO. The IPO comprises the sale of about 11.8m shares of the company by CreditAccess Asia N V. and a fresh issue of approximately 15m shares worth INR6,300m.
The company's higher margins compared to peers, good profitability, larger average ticket size, and decent track record should warrant it trade well post-IPO, but, peer comparison suggests that CAG is priced at fairly expensive valuation and only represents a 6 - 7% potential upside.
In this insight, we will provide an update on the latest financial and operating metrics to judge how the company has performed in FY2018. We will also compare the company's valuation with other India-listed microfinance institutes. Last, but not least, we will run the IPO through our framework. 

CreditAccess Grameen IPO Review - Needs to Diversify, But, Growth & Operating Metrics Beat Peers