Sunday, October 30, 2011

IPO ANALYSIS: CARE – TRUSTWORTHY OFFER - INVEST








The Canara and IDBI Bank promoted CARE will be shortly hitting the market with an IPO, an offer for sale.

Being a rating agency which has graded many IPOs knows the importance of right pricing. The IPO would be priced be priced appropriately, keeping in mind the retail investors interest.

CARE is a leading, full service credit rating company and in terms of rating income, for the year ended March 31, 2011, CARE is the second largest rating company in the country.

The primary focus has been to provide credit rating services. CARE has 18 years of experience in rating debt instruments and related obligations covering a wide range of sectors, such as manufacturing, services, banks and infrastructure. The list of clients includes banks and other financial institutions, private sector companies, central public sector undertakings, sub-sovereign entities, small and medium enterprises and micro-finance institutions, among others.

Strengths:

1. Established presence in rating debt instruments and bank loans.

2. Domain experience across a range of sectors.

3. Strong rating credibility and brand presence.

4. Strong origination capabilities and relationship management.

5. Experienced management.

6. Strong financial position and profitability - the total income has increased from Rs. 301.39 million for the financial year 2007 to Rs. 1,766.28 million for the financial year 2011, at a CAGR of 55.6% during such period. The profit after tax has increased from Rs. 135.61 million for the financial year 2007 to Rs. 910.59 million for the financial year 2011, at a CAGR of 61.0% during the same period.

AWAIT DEATILED ANALYSIS.

4 comments:

  1. Sir, I understand CARE is a credit rating organization. Who uses their ratings - I mean how their revenue is generated ?

    We will eagerly wait for the detailed analysis.

    ReplyDelete
  2. Banks insist on ratings for any kind of lending. That is their main source of income.

    ReplyDelete
  3. hello sir!!

    any idea which year ipo is expected to come?

    ReplyDelete