Shares of CreditAccess Grameen trade higher after promoter sells stake

Headquartered in Bengaluru, this NGO-turned-microlender is the largest micro-financer in terms of its loan book

Shares of CreditAccess Grameen gained over 1 percent in morning trade on July 3 after the promoter company announced the stake sale of Rs 11 billion in a microfinance institution (MFI) via block deal.

At 10.07 am, the stock was trading at Rs 1,269.10 on the National Stock Exchange, up 1.72 percent.

Plutus Wealth Management LLP, Canara Robeco Mutual Fund, BNP Paribas Arbitrage are the major institutional buyers to have acquired 2.18 percent of the stake sale.

The shares were sold in the price range of Rs 1,230-1,255 per share, implying a 7.2 percent discount to its previous closing price of Rs 1325 on June 29.

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The company recently signed a $200-million external commercial borrowing (ECB) agreement, hailed as a milestone. This deal represents the first social ECB loan in the microfinance industry in the country and the fourth to originate from India.

Headquartered in Bengaluru, this NGO-turned-microlender is the largest micro-financer in terms of its loan book, with assets under management (AUM) amounting to Rs 16,540 crore as of September.

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