Credit Analysis & Research Limited (CARE), which has been planning to come out with an IPO since last year, plans to provide a window for existing investors to part exit through the new offering.

Its investors include IDBI Bank, Canara Bank, SBI, IL&FS and Federal Bank and the company plans to offload a total of around 25% of the post-IPO equity capital which could be valued at approx. R500-600 Cr.

IDBI, holding 26% stake, is the main promoter of the rating agency along with Canara Bank.
Milestone Trusteeship (for shares held on behalf of Milestone Army Trust), ING Vysya and Tata Investment are other significant stakeholders in CARE.

Also Aditya Birla PE and Bajaj Holdings & Investment could be participating in the sale as they had picked up 10% stake in the company for around R150 Cr in 2010.

CARE Ratings commenced operations in 1993 and since then has grown to become the second largest rating agency after Crisil (now a unit of S&P). Operating out of its office in Sion, Mumbai, it is the only fully domestic rating agency with no foreign holding.

Rival rating agencies Crisil and ICRA are both listed which are now under foreign firm’s control. Crisil has a market cap of around R6,500 Cr whereas ICRA is valued at R1,400 Cr by the market players.

After a dull stock market movement last year, the government is planning to revive the markets this year along with its own set course of divestments. Some of the filed DRHPs this year include that of Bharti Infratel, GB Tools & Forgings, JustDial and V-Mart among others.

However, around 20 companies including Reid & Taylor, Micromax Informatics, Embassy Property, Joyalukkas and Tata Autocomp System had called off their IPO plans totalling nearly R9,000 Cr in this year, according to SMC Global Securities.

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