Credit Analysis and Research Limited (CARE Ratings) on Tuesday proposed a public offer of Rs.7,199,700 equity shares of face value of Rs.10 each through an offer for selling shareholders for cash at a price to be determined through a 100% book building process.
"Bids can be made for a minimum of 20 equity shares and in multiple of 20 equity shares while the price band has been fixed between Rs.700 and Rs.750 per share," said CARE general manager Sanjay Agarwal.
The offer will constitute 25.22% of the post-offer- paid-up equity share capital of the company.
The bid/offer period opens up for subscription on December 7 and will close on December 11 for all Bidders, except for the Anchor Investors, whose offer period shall be one working day prior to the bid/offer opening date, December 6.
The offer is through book building process wherein not more than 50% of the offer shall be allocated on a proportionate basis to QIBs (qualified institutional buyers), provided that the company and the selling shareholders may allocate up to 30% of the QIB portion to the anchor Investors on a discretionary basis, informed official.
A total of 5% of the QIB portion (excluding anchor investors´ portion) shall be be available for allocation on a proportionate basis to mutual funds only, and the remainder shall be available o all QIB bidders, including mutual Funds, added an official.
The proposition also declares that not less than 15% of the offer shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the offer shall be available for allocation to retail individual bidders in accordance with SEBI regulations.
The book running lead managers to the offer are Kotak Mahindra Capital Company Limited, DSP Merill Lynch Limited, Edelweiss Financial Services Limited, ICICI Securities Limited, IDBI Capital Market Services Limited and SBI Capital Markets limited.
"Bank credit growth is one of the major growth for rating companies like us. The Care Bank Facility Ratings is 26% and our target sectors are corporate, financial, public finance, MSME and infrastructure," said Agarwal.
The company stands among the five rating agencies in India, with a profit revenue of Rs.50 crore in half year (April 1- Sept 31) and Rs.115 crore in FY´12.
CARE Ratings has a strong presence in Hong Kong, Mauritius and Maldives while it has also commenced operation in Mexico, Ecuador and Nigeria.
(Reporting by Shabarni Basu, Image by Avishek Mitra/IBNS)