CreditAccess Gramin shines bright

CreditAccess Gramin is among the top five gainers since the opening bell. The stock shot up over 8.5% to Rs.749 and currently trades at Rs.725 levels. Its market cap stands at Rs.10,440 crore.

The company’s Board met yesterday and approved fund raising to the tune of Rs.1000 crore by issue of equity shares, which could be via private placement and/or follow-on public offering and/or preferential issue and/or qualified institutions placement, or any combination thereof.

The company also gave a business update saying that more than 98% of its centers with 100% employees have resumed operations. It also said:

• Loans under moratorium down to 18% in August from 24% in July and 26% in June.
• Collection efficiency improved to 82% in August v/s 76% (MoM)
• Collection efficiency for the company's acquisition Madura Microfinance stood at 75% v/s 64% (MoM)
• Disbursements of Rs.485 crore August, new disbursements made only to borrowers making on-time payments
• Currently holds Rs.1,778 crore in cash / bank balance & liquid investments v/s Rs.1636 crore.

Following this, brokerage firm, CLSA has initiated coverage with a buy rating and a target of Rs 840 per share.