Credit Analysis and Research Limited (CARE) is trading at Rs 925, a 23% premium against its issue price of Rs 750 per share in the pre-open bidding on the National Stock Exchange (NSE). Total 40,697 shares or indicative equilibrium quantity has demanded at equilibrium price at 0916 hours.
CARE, the second-largest credit rating agency in India, has raised Rs 540 crore by issuing 7.2 million shares through initial public offer (IPO). The company has fixed the issue price at higher price band at Rs 700-750 per share.
The IPO attracted bids for 245.56 million shares against 7.2 million shares on offer, translating to 34.11 times subscription, according to information available in basis of allotment.
The category reserved for qualified institutional buyers (QIBs) was subscribed 43 times, while non-institutional investor’s portion received 110 times subscription. Shares reserved for retail investors got subscribed 6.11 times and of anchor investors by 1.81 times.
CARE will not receive any proceeds from the Offer, and all proceeds shall go to the selling shareholders.
“The objects of the Offer are to carry out the sale of equity shares by the selling shareholders and to achieve the benefits of listing the equity shares on the stock exchanges,” the company said in a prospectus.
CARE is the third rating agency in the country to go public after Crisil and Icra.
