CreditAccess Grameen Ltd (CAGL) is a Bangalore based NBFC, which is promoted by CreditAccess Asia N.V. (“CAA”). It is focused on providing microloans to women customers, predominantly in Indian rural areas. Their primary focus is to provide income generation loans to their customers, which comprised 87.02% of their total joint lending group (JLG) loan portfolio, as of March 31, 2018. Company’s AUM has grown at healthy 65% CAGR over FY2014-18 with strong asset quality (GNPA -1.97%, NNPA- NIL).

Outlook & Valuation: At upper end of the IPO price band, CAGL is valued at 3.8x FY18 book value (pre-IPO) and on post dilution basis at 2.9x of BV. The strong sponsorship of CreditAccess Asia, along with a well capitalised balance sheet and an experienced and focused management provides an excellent base for the next level of growth. Based on the above positive factors we assign SUBSCRIBE rating to the issue.

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