ICRA Limited (an Associate of Moody's Investors Service)

Issue Period March 20, 2007 to March 23, 2007Issue Size 25,81,100 Equity SharesIssue Type 100% Book BuildingFace Value Rs. 10/-Price Range Rs.275/- to Rs.330/-Tick Size Re. 1/-Market Lot 20 sharesMinimum Order Quantity 20 sharesMaximum Subscription Amount for Retail Investor Rs.100000IBook Running Lead Managers SBI Capital Markets Limited & Kotak Mahindra Capital Company LimitedSyndicate Members: Kotak Securities Limited & SBICAP Securities LimitedCategories: FI, MF, IC, FII, VC, FVCI, MLA, BDFI, IND, HUF, NRI, CO & OTH.Source: NseIndiaProfile :ICRA Limited (an Associate of Moody's Investors Service) was incorporated in 1991 as an independent and professional company. ICRA is a leading provider of investment information and credit rating services in India. ICRA’s major shareholders include Moody's Investors Service and leading Indian financial institutions and banks. With the growth and globalisation of the Indian capital markets leading to an exponential surge in demand for professional credit risk analysis, ICRA has been proactive in widening its service offerings, executing assignments including credit ratings, equity gradings, specialized performance gradings and mandated studies spanning diverse industrial sectors. In addition to being a leading credit rating agency with expertise in virtually every sector of the Indian economy, ICRA has broad-based its services for the corporate and financial sectors, both in India and overseas, and currently offers its services under the following banners:>Rating Services >Information, Grading and research Services >Advisory Services >Economic Research >OutsourcingPositive :* ICRA is the No. 2 credit rating agency in the country with 399 outstanding public issues under its belt. It enjoys a strong market position, brand recognition and creditability. * Moody�s Group, one of the global credit rating majors, holds a 29% equity stake. This will help ICRA to leverage the US company�s expertise in newer products. Also, ICRA provides certain outsourcing services to Moody�s Investors Service. Negative :* Higher Expense , Sales is very low.* 50 crore ESOS loan to be repaid by them .Finance :Annualized EPS for the nine months ended December 2006 on the post-issue equity works to Rs 15.9. On the price band of Rs 275-Rs 330, PE is 17.3-20.8. The only listed comparable player is Crisil, currently traded around Rs 2100, giving PE of 23 times FY 2006 consolidated EPS. Crisil deserves higher PE as it is: over four times larger than ICRA, growing at a faster rate than ICRA, perceived to be more aggressive, and has made much more headway in non-rating and international business. Besides, S&P controls a 56.5% stake in Crisil compared with 29% by Moody�s in ICRA. ICRA IPO Allotment status - come back here for the same.