CreditAccess Grameen has filed Tranche I prospectus for public issue of secured, redeemable, non-convertible debentures of the face value of Rs 1,000 each. The base issue size is Rs 250 crore with an option to retain oversubscription up to Rs 250 crore, aggregating up to Rs 500 crore, which is within the shelf limit of Rs 1,500 crore (Tranche I Issue).

The Tranche I Issue opens on Monday, 14 November 2022, and closes on Friday, 2 December 2022, with an option of early closure. The NCDs are proposed to be listed on BSE and NSE with NSE as the designated stock exchange for the issue. The NCDs have been rated IND AA-/Stable by India Ratings and Research.

The minimum application size would be Rs 10,000 (i.e. 10 NCDs) and thereafter in multiples of Rs 1,000 (i.e. 1 NCD) thereof.

This issue has tenure options of 24 months, 36 months and 60 months for secured NCDs with monthly and cumulative coupon payment modes being offered across series I, II, III, IV, V and VI.

Effective yield (per annum) for NCD holders in all categories ranges from 9.83% to 10.46% per annum. Amount on maturity for NCD holders in all categories under the cumulative coupon payment option ranges from Rs 1,206.57 to Rs 1,644.91.

Out of the net proceeds of the Tranche I Issue, at least 75% shall be utilised for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the company and a maximum up to 25% will be utilised for general corporate purposes.

As at 30 September 2022, the company has a Gross AUM of Rs. 16,539.11 crore on a consolidated basis with presence through 1,684 branches and 10,826 loan officers in India.

Bengaluru-headquartered CreditAccess Grameen is India's largest microfinance institution and recognized by the Reserve Bank of India. The company has assets under management (AUM) of Rs 16,539.11 crore on a consolidated basis (including its subsidiary, Madura Micro Finance (MMFL)), of 30 September 2022.

As of 30 September 2022, the company's footprint spans 14 states and 1 UT, powered by a network of 1,684 branches servicing approximately 37.98 customers. The company has 15,667 full-time employees on a consolidated basis as of 31 March 2022. It also offers retail finance products to support the evolving needs of its existing customers. The promoter group, CreditAccess India N.V. held a 73.74% stake in the company at end-September 2022.

On a consolidated basis, the company's net profit surged 170.6% to Rs 172.03 crore in Q2 FY23 as against Rs 63.57 crore recorded in Q2 FY22. Total income jumped 31.6% to Rs 814.31 crore in Q2 FY23 from Rs 618.58 crore reported in the corresponding quarter previous year. Net interest income (NII) grew 39.9% YoY to Rs 516.2 crore in Q2 FY23 as against Rs 368.9 crore in Q2 FY22. Net interest margin (NIM) improved 80 bps to 12% in Q2 FY23 as compared to 11.2% posted in Q2 FY22.