Moody & #39;S Picks Up 9% Ifci Pie In Icra
Moody's Investment Company India Pvt Ltd, by purchasing a nine per cent share in Icra Ltd from IFCI for Rs 5.94 crore, has become the largest shareholder in the rating agency.
The deal (792,500 shares at Rs 75 per share) takes the parent company Moody's Investors Services' stake in Icra from 12 per cent to 21 per cent, while IFCI's share has come down to 17 per cent from 26 per cent.
In 1999, Moody's had acquired an 11.36 per cent stake in Icra for a consideration of Rs 6 crore.
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Apart from IFCI and Moody's, the shareholders in Icra include banks such as State Bank of India, Punjab National Bank and Central Bank of India, insurance companies Life Insurance Corporation and General Insurance Corporation of India, HDFC and ILFS.
Apart from the equity stake, Icra has a technical services agreement with Moody's which entails Moody's providing certain high-level technical services to Icra.
The agreement is aimed at helping Icra's in-house research capabilities and provide it access to Moody's research base. Under the agreement, Moody's will also provide training to Icra analysts.
Icra has also been working with Moody's Risk Management Services, a subsidiary of Moody's Investors Services, for extending technology in credit risk management for banks and other lenders.
The range of services of Icra includes rating services, information services and advisory services. While the rating services division rates rupee-denominated debt instruments issued by companies, municipalities and others, the information services division focuses on providing authentic data and value-added products to a slew of users, and the advisory services division offers wide ranging management advisory services including strategic counselling and restructuring solutions.