CreditAccess Grameen lists at discount

CreditAccess Grameen made a poor debut on the bourses today. As against the IPO price of Rs.422, it got listed on the BSE at Rs.385, a discount of almost 9%.

The IPO was subscribed 2.22 times, helped by institutional investors with HNIs and retail investors’ portion remaining under-subscribed.

In our New Issue Analysis, we had said, “Geographically concentrated portfolio, low fancy for mid-caps in secondary markets currently and regulatory uncertainties surrounding MFI business weigh negatively on the issue. Issue pricing doesn’t help either. While the company has delivered financially in the past, one may skip the IPO for now and review it post listing.”