CreditAccess Grameen up for sale: Dutch owner seeks $2.7 billion valuation

The Amsterdam-based CreditAccess India B V holds a 66.56% stake in CreditAccessGrameen, and is aiming for a valuation of around $2.7 billion in the potential deal

India’s largest microlender, CreditAccess Grameen Ltd, may soon have a new owner, as its Dutch promoter CreditAccess India B V is seeking to exit the company, Livemint reported on Monday.

The Amsterdam-based company holds a 66.56 per cent stake in CreditAccessGrameen, and is aiming for a valuation of around $2.7 billion. If achieved, this deal would be the largest in India’s $51 billion microfinance sector.

CreditAccess India B V is backed by Olympus Capital Asia and the Asian Development Bank. To manage the sale, the company has engaged investment banks Jefferies, Barclays Investment Bank, and Bank of America to help find potential buyers, the report added.

Bengaluru-based CreditAccess Grameen Ltd stands as the largest microfinancer among 87 such entities in India with a gross loan asset of Rs 26,700 crore at the end of the financial year 2023-24 (FY24). The company was founded in 1999. “….talks for the potential takeover have attracted several banks…,” a source close to the development told Mint.

According to its Friday closing price, CreditAccess Grameen Ltd had a market value of Rs 20,000 crore. Since it is a publicly-traded company, a potential deal would also require permission from the Reserve Bank of India as well as the market regulator - Securities and Exchange Board of India.

In its quarterly result published in mid-July, the company reported a net profit increase of 14.12 per cent to Rs 397.66 crore in the quarter ended June 2024.

During the same period, the company logged a 29.23 per cent jump in sales to Rs 1512.03 crore. In the year-ago period, its sales stood at Rs 1170.03 crore. Due to the lender’s unique position, experts are of the view that it has the potential to command up to 20 per cent premium on the current market value.