CARE
Credit Analysis and Research (CARE) had met with overwhelming response when it had gone public in Dec’12. The company had raised Rs.540 crore in an IPO that was over-subscribed by nearly 41 times. The IPO price was Rs.750 and it got listed at huge 25% premium over the listing price. In August 2013, it had hit a new 52-week low at Rs.415.05 and it consistently remains well below the IPO price.
The company did well for Q2FY14, with total income going up 6% (YoY) at Rs.71 crore and net profit was also up 6% at Rs.35 crore. Its rating income grew 4% and this income came mainly from rating of bank facilities, up from 1494 to 1863 and rating for long term debt instruments rose from 71 to 85. The total number of new assignments rose 17% to 2188. Of the total operating expense of Rs.18 crore for Q2, 67% was on employee cost; people are the biggest asset and the ‘raw material’ of rating and such service oriented companies. IDBI Bank is the biggest shareholder Iin the company, holding 16.93% stake as at 30th Sept 2013, followed by Canara Bank which holds 14.97%.SBI holds 6.31% and other shareholders are – IL&FS Financial, Bajaj Holdings, Federal Bank, IL&FS Trust, Aditya Birla PE Fund, Serum Institute of India, Franklin Templeton, ING Vysya amongst many more. 63.6% stake is held by FIIs and DIIs.