Crisil buys 8.9% in CARE Ratings from Canara Bank for Rs 435 cr

Crisil, the Indian credit rating agency controlled by Standard & Poor’s, said it acquired an 8.9% stake in competitor CARE Ratings Ltd.

It said it purchased the stake from Canara Bank Ltd for Rs 435 cr, or Rs 1,659.79 per share. A total of 26.22 lakh shares were acquired.

“The investment has been made pursuant to the Request for Quotation dated June 19, 2017 issued by Canara Bank Ltd for the sale of 8.9% stake in CARE, which was a good opportunity to make an investment in the good long term growth prospects of the credit rating sector,” Crisil said.

The transaction was completed yesterday, it added.

Canara Bank had put up the stake for sale at a floor price of Rs 1,500 per share.

Crisil dominates the Indian ratings sector with an estimated market share of around 70%.

US-based Standard & Poor’s acquired a majority stake in Crisil in 2005 by raising its holding in the company to 58.5% by acquiring 49.07% in the company via an open offer.

CARE had revenue of Rs 280 cr during the year ended March 2017.