The stock of ICRA had spurted 20% to Rs 957.10, on Monday (16 April). It had settled at Rs 797.60 on the day of its debut (Friday, 13 April) compared to the IPO price of Rs 330.

A lot of pent-up demand for the IPO has boosted the counter in the secondary market since ICRA's debut. The ICRA IPO had met with an overwhelming investor response. It was subscribed 75 times. The IPO met with strong response from a cross-section of market participants, institutional investors, retail investors and high networth individuals.

The current price of Rs 1088 discounts its April-December (9-month) 2006 annualised EPS of Rs 15.90, by a PE multiple of 68.4 compared to a PE multiple of 20.75 at the IPO price of Rs 330.

Global rating agency, Moody’s, is the single-largest shareholder in ICRA post the IPO, even as its holding in the company declined to 28.51% from 29.1% following the public offer.

ICRA is the No. 2 credit rating agency in the country with 399 outstanding public issues under its belt. In addition to providing rating and grading services, ICRA provides research-based information and outsourcing services.

ICRA will get an additional revenue stream from market regulator Securities & Exchange Board of India (Sebi)’s decision last month, making grading of IPOs mandatory for companies. Those coming out with IPOs will have to get their offers graded by CRISIL, ICRA or CARE.

ICRA will also be able to garner business from State Bank of India (SBI), which was not possible earlier due to regulations.

For April-December (9-month) 2007, ICRA reported a net profit of Rs 13.59 crore on revenue of Rs 49.54 crore. The equity capital of the company is Rs 10 crore and the face value per share is Rs 10.