CARE IPO: Review Analysis & Details of CARE Rating Agency IPO: Finance Trading Times

CARE IPO: Review Analysis & Details of CARE Rating Agency IPO

CARE IPO Details, Review, Analysis, Opinion and information on CARE Rating Agency IPO
You may have heard a lot about rating agencies like S&P, Moody's, etc. and related news items like "S&P downgrades XYZ country or stock" or "Moody's upgrades rating of this country from BB to BB+" and so on. So basically, these rating agencies "rate" companies, businesses, countries and similar entities. These ratings are then used by traders and investors to make trading and investment decisions and that's the business of these rating agencies. Similarly, CARE is one of the rating agencies in India and it is planning to come out with its IPO or initial Public Offering.
In this article we will look upon the Details, Review, Analysis of the CARE IPO. Let's start with some basic details first:
- The size of CARE IPO is 7.19 million equity shares.
CARE Logo

- The above no. of shares will constitute 25.22 percent of the post-offer paid-up capital

- The existing shareholders are selling their stake - offer for sale (OFS) model - i.e. there will no fresh shares issued

- The capital expected to be collected through these shares will be in the range of Rs 504 crore to Rs 540 crores, depending on the price band.

What are the primary reasons for CARE to come out with the CARE Rating Agency IPO?
Although we dont have concrete details available at the moment, any IPO is always brought for Fund raising. It is learnt that the money collected through this IPO will be used for business expansion, working capital requirements, diversification into new areas of KPO, Risk Management and setting up offices globally.

What is the issue size of the CARE Rating Agency IPO?
The CARE IPO size is of 7.19 million shares.
Ivestors can bid for a minimum of 20 equity shares and in multiple of 20 shares.

What is the price band of CARE Rating Agency IPO?
The Face Value of each Equity Share is Rs. 10 each.
The price band and the minimum bid lot will be Rs 700 to Rs 750 a share.
As of now, we dont have any news about any discount being offered to retail investors.

CARE IPO: Review Analysis & Details

How many shares will be sold in the CARE IPO?
The total no. of shares to be sold through this IPO is 7.19 million shares.

What are the IPO dates for CARE Rating Agency IPO?
The issue will open on December 7 and close on December 11, 2012

How will the capital raised by CARE IPO be used?
It is learnt that the money collected through this IPO will be used for business expansion, working capital requirements, diversification into new areas of KPO, Risk Management and setting up offices globally.

Any ratings given to CARE IPO?
Rating agency getting a rating for its IPO :) - Why not?
But as of now, we dont have info about that. This section will be updated as soon as we get relevant details.

What are the business results for CARE IPO?
As per the details available, the following info is available about the business details of CARE:
- It claims to be second largest rating agency in the country
- It claims to have achieved 40% growth in last few years
- Company claims to have cash reserve of around Rs 375 crore and is a debt free company

What are the analysts recommendations and business results for CARE IPO?
- No info about that as of now. However, the company is bullish about expansion plans and cites the reasons such as development of corporate bond market will open up new business opportunities for the companies and all rating agencies.
The diversification plans of KPO, risk management, etc. also seem to be interesting.

Two other premier rating agencies in the country - CRISIL and ICRA are already listed on the stock exchanges. So CARE will be the third rating agency to go public.
A look at the performance of other rating company stocks over the last few years tell us completely different picture. CRISIL stock prices have been stable and it has been paying dividends regularly, while ICRA has been volatile in terms of stock prices and paid lesser no. of dividends.

All big names - Bank of America-Merrill Lynch, ICICI Securities, Edelweiss Capital, Kotak Securities, IDBI Capital and SBI Capital are learned to be the Book Running lead managers and advisors for the CARE IPO.
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