CreditAccess To Hit Bourses On August 23: Here's Strategy You Can Use

The issue of Bengaluru-based micro-finance company CreditAccess Grameen is to make its way on the bourses on August 23. The issue price for the IPO had been fixed at the higher end of the price band which ranged between Rs. 418 and Rs. 422 per share.

The public issue was subscribed 2.22 times. The company received bids for a total of 4.10 crore shares as against 1.88 crore equity shares on offer primarily supported by QIB class of investors.

And given the offbeat response to the issue by varied investor class, experts expect the stock to list at a flattish note or with small gains to the issue price.

Nonetheless, those who can afford to hold on to the stock for a while experts suggest to hold the scrip for a period of up to one year as a gain of 10-15% is likely in the offing. In any case, bumper listing for the stock is not anticipated, at best the stock can move up higher by 5-10% and the same listing day can also see the stock cracking to levels below the issue price.

Also, if experts are to go by there are recommendations to accumulate the scrip on every decline as the company has strong fundamentals in the CAG business. And also, in the segment businesses have outperformed in the longer term.

However, there is also an outlook that the stock price shall not fall below the Rs. 400 mark given the weak demand for the scrip during the IPO.

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