CARE Ratings, the premier rating agency in India has become the first rating agency in the country to complete 100 IPO grading assignments. The gradings assigned cover diverse sectors such as power, media and entertainment, telecom, hotels, real-estate, textiles, banking etc. The companies graded belong to both public as well as private sectors. Some of the companies which have been graded by CARE include Coal India Ltd., MOIL Ltd., JSW Energy Ltd., Cox & Kings India Ltd., Gujarat State Petroleum Corporation Limited, Punjab & Sind Bank, IL &FS Transportation Networks Ltd., L&T Finance Holdings Ltd., PTC India Financial Services Ltd., etc.
Securities and Exchange Board of India (SEBI), made IPO grading mandatory from May 1, 2007 to help investors make informed decision while investing in companies that are planning to raise equity capital from the market by way of Initial public Offering (IPO). The main purpose of IPO grading was to guide retail investors and act as an alert to prevent them from investing in fundamentally weak, fly by night operators as the track record of such companies are largely unknown to investors at large.
IPO grading is an independent and professional opinion on the fundamentals of the issuer. It provides the investor concise information regarding future prospects of the business, financial soundness, corporate governance practices adopted by the issuer and management/promoter track record. The grade assigned to any issue represents a relative assessment of the fundamentals of the issuer against other listed equity securities in India. However, grade is not an opinion on the issue price being appropriate in relation to the issue fundamentals. It is also not a recommendation to buy, sell or hold the graded security, or a comment on the future market price or suitability of the investment to the investor. The grading is assigned on a five-point point scale with a higher score indicating stronger fundamentals and vice versa.
Speaking on the occasion Mr. D R Dogra, Managing Director and CEO said, "We are all very proud of this accomplishment and grateful to our clients and other market participants for having faith in our services. We look forward to maintaining high quality of our services and setting new benchmarks”.
About CARE Ratings:
CARE Ratings was incorporated in 1993 by Premier Financial Institutions including IDBI Bank, Canara Bank & SBI are major stakeholders. It is registered with SEBI under the Securities & Exchange Board of India (Credit Rating Agencies) Regulations, 1999. CARE’s Ratings are recognized by Govt. of India and all regulatory authorities like RBI and SEBI. CARE Ratings has significant presence in all sectors including Banks / FIs, Corporates, Public finance. Coverage of CARE Ratings has extended to more than 2500 entities over the past decade and is widely accepted by investors, issuers and other market participants. CARE Ratings have evolved into a valuable tool for credit risk assessment for institutional and other investors, and over the years CARE has increasingly become a preferred rating agency.