The NCD Tranche II issue had a base issue size of Rs 400 crore with an option to retain oversubscription up to Rs 600 crore aggregating up to Rs 1,000 crore, which is within the shelf limit of Rs 1,500 crore.

The company said that, “The NCD Tranche II Issue opened for subscription on 24 August 2023, and had an early closure on 1 September 2023. The Tranche II Issue received a subscription of about Rs 1,012 crore (2.53x of the base issue size) as per the consolidated bid details on the stock exchange platforms.”

The micro finance institution exercised the option to retain oversubscription and allocated 98,95,794 NCDs of the face value of Rs 1,000 each to valid applications aggregating to Rs 989.58 crore.

Udaya Kumar Hebbar, managing director of CreditAccess Grameen said, “We are pleased to witness another successful raising of domestic funds through the public NCD route. This demonstrates the confidence of various investors in our unique business model, aiming to advance the financial inclusion agenda across rural India. The issue aligns with our liability strategy which focuses on diversification in funding sources and higher share of longer tenure funds, leading to positive ALM mismatch and stronger liquidity position.”

Bengaluru-based CreditAccess Grameen is a microfinance institution, focused on providing micro-loans to women customers predominantly in rural areas across India. The Company is now operating in 352 districts in 14 states (Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Odisha, Kerala, Goa, Gujarat, Rajasthan, Uttar Pradesh, Bihar, Jharkhand, and West Bengal) and one union territory (Puducherry) in India through 1,786 branches.

The company's net profit surged 151.5% to Rs 348.46 crore on 53.9% jump in total income to Rs 1,170.72 crore in Q1 FY24 over Q1 FY23.