Credit rating agency Credit Analysis & Research Ltd (CARE) is exploring the possibility of listing its shares, its Managing Director & Chief Executive Officer, Mr D.R. Dogra, has said.

The company is not in immediate need of money. So the listing objective could be met through offer of sale route, Mr Dogra told Business Line here.

An offer of sale would involve some of the existing shareholders selling part of their holding to the public.

Mr Dogra said that the listing proposal would have to be taken to the board of directors. After the board approval, the proposal would also require shareholders' nod.

Promoted in 1993 by major financial institutions and banks in India, CARE is among the leading players in the credit rating industry with about 30 per cent share. If CARE were to get its shares listed, it would be third credit rating Company in India to get its shares listed. Equity shares of Crisil and ICRA are listed on the Indian bourses.

Stakeholding pattern

Currently, four shareholders — IDBI, Canara Bank, State Bank of India and IL&FS – together hold about 70 per cent stake in the company. The remaining stake is with 10-12 shareholders. While IDBI's stake stood at 26.75 per cent, Canara Bank has shareholding of 23.67 per cent. State Bank of India's stake in CARE is 9.7 per cent.

Recently, several new investors including a number of private equity funds have bought stakes in CARE from shareholders. Some of the new investors have been putting pressure on the management and even suggested that CARE should look at listing, it is learnt. The expectations of shareholders have in general gone up and it is being contended that their expectations could be met through listing of shares.

Milestone Religare, Aditya Birla through a private equity fund has bought into CARE. Some of the recent investors in CARE include Bajaj FinServ and Dr Cyrus Poonawala's Serum Institute and its sister concern.

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