CreditAccess India seeks $2.7-bn valuation for CreditAccess Grameen, eyes biggest MFI deal: Report

Promoters have engaged investment bankers Jefferies, Barclays Investment Bank, and Bank of America to identify potential buyers.

CreditAccess India BV, a Netherlands-based firm holding 66.56 percent in CreditAccess Grameen, seeks a valuation of around $2.7 billion for the microfinance company, according to a Mint report. This potential deal would be the biggest in India's $51-billion MFI space, it said.

Promoters have engaged investment bankers Jefferies, Barclays Investment Bank, and Bank of America to identify potential buyers. These bankers have reportedly reached out to privately held banks and major financial institutions. Should negotiations progress, the deal would require an open offer as CreditAccess Grameen is a publicly listed entity and would need approval from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi).

The report suggests that the valuation being considered for CreditAccess Grameen ranges between Rs 23,000 crore and Rs 24,000 crore. The company's market value stands at Rs 20,000 crore. A source told Mint that due to the company's unique market positioning and strong interest income margins, it could command a 15-20 percent premium over its current market value. Early discussions have drawn interest from several banks.

CreditAccess India BV is supported by the US-based private equity firm Olympus Capital Asia, and the Asian Development Bank (ADB), along with several family offices and high-net-worth individuals. CreditAccess Grameen, with gross loan assets totalling Rs 26,700 crore at the end of FY24, is the largest among 87 microfinance firms in India.

Olympus Capital Asia, a fund specialising in mid-cap Asian firms, holds a 15 percent stake in CreditAccess India BV. Attempts to contact CreditAccess India BV, ADB, Olympus Capital Asia, CreditAccess Grameen, as well as key figures such as Paolo Brichetti, Daniel Mintz, and Frederick Long, yielded no responses. Barclays Investment Bank declined to comment, and spokespeople from Jefferies and Bank of America also refrained from commenting. Moneycontrol was unable to independently verify the report.