The Credit Analysis and Research Ltd has fixed the price band of its initial public offering at Rs 700-750 a share. The rating agency firm will raise Rs 503 crore at the lower end of the price band and Rs 539 crore at the upper band.
None of the proceeds of the offer will be utilised by CARE, all the proceeds will go to the selling shareholders.
CARE’s major shareholders include IDBI Bank (26 per cent), Canara Bank (23 per cent) and SBI (9 per cent).
The issue opens on December 7 and closes on December 11.
The public offer consists of 71.99 lakh shares (of face value Rs 10) through an offer-for-sale by selling shareholders. There will be no fresh issue of shares.
The offer will constitute 25.22 per cent of the post-offer paid-up equity share capital of the company. The ratings agency said that it may look at making acquisitions in the research sector. It plans to grow its product portfolio and focus on operational efficiency. About 86 per cent of CARE’s total unconsolidated income comes from its core ratings business.
The Securities and Exchange Board of India has exempted CARE Ratings from the grading process as it would result in a rival rating agency accessing its books.
Kotak Mahindra Capital Company, DSP Merrill Lynch, Edelweiss Financial Services, ICICI Securities, IDBI Capital Market Services, and SBI Capital Markets are the book running lead managers to the issue