Initial Public Offer: CreditAccess Grameen Ltd - NOT RATED - Kotak

- CreditAccess Grameen Ltd was incorporated as Sanni Collection Private Limited (SCPL) on June 12, 1991 at Calcutta, West Bengal. The entire shareholding of SCPL was acquired by certain trustees of T. Muniswamappa Trust (TMT), a public charitable trust engaged in the business of providing micro loans in Karnataka. CreditAccess Grameen Ltd (CGL) is a leading Indian micro-finance institution headquartered in Bangalore, focused on providing micro-loans to women customers predominantly in rural areas in India. Its wide range of lending products addresses the critical needs of the customers throughout their life cycle and includes income generation, family welfare, home improvement and emergency loans. The company's products are built on a deep understanding of the requirements of its customers (especially customers from rural areas) and the flexibility of products (in terms of ticket sizes, end-uses and repayment options) and the manner of their delivery differentiates from competitors and generates customer loyalty.

- The company provides loans primarily under the joint liability group (JLG) model. The primary focus is to provide income generation loans to customers, which comprised 87.01% of its total JLG loan portfolio, as of March 31, 2018. In 2016, with a view to diversifying our product profile, company introduced individual retail finance loans for customers who had been for at least three years and fulfill certain other eligibility criteria linked primarily to their credit history. The company follows a strategy of contiguous district based expansion across regions and cover 112 districts in the five states of Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh and Madhya Pradesh. Operations are well-diversified at the district level, with no single district contributing more than 5% to gross AUM. Customer base increased from 0.50 million active customers as of March 31, 2014 to 1.85 million active customers as of March 31, 2018. The company is promoted by CreditAccess Asia N.V., a multinational company specializing in MSE financing, which is backed by institutional investors and has micro-lending experience through its subsidiaries in four countries in Asia.

Source : Equity Bulls

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