CreditAccess gains 8% on completion of direct assignment of Rs 139 crore

Shares of CreditAccess Grameen (CAGL) has surged 8 per cent to Rs 562 on the BSE on Thursday in early morning trade after the company completed a direct assignment of Rs 139 crore on June 26.

However, on the National Stock Exchange (NSE), the stock rallied 15 per cent to Rs 599, also its all-time high, in early morning trade.

“This is the first direct assignment transaction initiated during the FY2019-20. With this transaction, the Company has completed one securitization and one direct assignment transaction totaling to Rs 249 crore in FY-2019-20,” CAGL said in a regulatory filing.

The entire direct assignment pool qualifies for priority sector treatment as per the guidelines prescribed by the Reserve Bank of India.

On June 6, the non-banking finance company informed exchanges that it completed a securitisation of Rs 110 crore.

The securitization pool has been rated provisional [ICRA] A (SO) by rating agency ICRA, which signifies adequate degree of safety regarding timely servicing of financial obligations.  Such instruments carry low credit risk, it said.

Analysts at ICICI Securities believe CAGL is likely to continue outperforming the micro finance institution (MFI) industry in terms of growth. "We expect it to sustain higher return ratios given its expertise in rural micro-financing, weekly collection model and cost-effective growth strategy," the analysts said.

At 09:29 am, the stock was trading 4 per cent higher at Rs 541 on the BSE and NSE, as compared to a 0.24 per cent rise in the benchmark indices. A combined 23,530 shares have changed hands on the counter on the NSE and BSE so far.