Saturday, March 17, 2007


Type of Issue : Book Built
Issue Opens: 20 March, 2007
Issue Closes: 23 March, 2007
Issue Size : 2,581,100(No. of Shares)

Lower Price Band : Rs.275
Upper Price Band: Rs.330

Application Multiple: 20 and in multiples there off starting with atleast 20 shares.

Maximum Shares: 300(for Retail)

Information URL :
Prospectus URL :

ISSUE Description:

Company Background:

ICRA is one amongst the four credit rating agencies in India providing a wide range of products and services. ICRA was established in 1991 as a credit ranging agency by a consortium of financial/investment institutions, commercial banks and financial services companies.

ICRA is primarily engaged in the business of providing rating services. In addition, along with their subsidiaries, provide i) consulting services ii) information technology based services iii) information services and iv) outsourcing services
The company is planning to expand its global capacities and enter into joint ventures outside India in the future. However the company will not receive any proceeds from the offer.
Moody’s India which is a part of the Moody’s Group, is the promoter of ICRA with a 29.10% stake. The other top share holders include IFCI, SBI, LIC, Administrator of the Specified Undertaking of UTI, PNB, GIC of India, Central Bank of India, Allahabad Bank and Indian Bank. Of these IFCI, SBI and Administrator of the Specified Undertaking of UTI are selling their shareholding in this offer for sale.

Objects of the Issue:

To carry out the sale of shares owned by the existing shareholders and to achieve the benefits of listing.

Key Financials for year ended March 31, 2006
Revenue Rs 559.09Mn PAT Rs.142.08 Mn
EPS Rs. 14.34 NAV (Rs.) 89.89
RoNW 13.67%


The credit rating business due to its knowledge intensive nature and need for a credible track record, ensures entry barriers for new entrants. ICRA with its Moodys shareholding, credible track record and fair valuation vis a vis its peer CRISIL seems an attractive investment for the long term. Apply Aggresively.