(From left) Icra managing director Naresh Takkar, vice-chairman Pranab Kumar Choudhury and Kotak executive director T.V. Raghunath in Mumbai on Monday. (Fotocorp)

Mumbai, March 12: Icra Ltd has fixed a price band of Rs 275-330 per share for its initial public offering (IPO). The IPO will help IFCI, administrator of the Specified Undertaking of Unit Trust of India and the State Bank of India liquidate their holdings in the credit rating agency.

Since the public offer is for over 25.81 lakh shares, the selling shareholders will mobilise Rs 71 crore at the lower end of the price band and Rs 85 crore at the upper end. IFCI will sell 18.6 lakh shares, administrator of the Specified Undertaking of the Unit Trust of India 7 lakh and SBI around 20,500 shares.

Icra will be the second rating agency to be listed on the bourses after Crisil. If Rs 330 is the cut-off price, the company will be valued at Rs 330 crore. Though the offer does not include any fresh issuance of equity, Icra will issue over 2.88 lakh shares to Moody’s India and over 9 lakh shares as ESOPs. Icra will issue these shares after the offer price is determined. The 9 lakh shares will be issued to ESOS Welfare Trust.

International credit rating agency Moody’s now holds 29.10 per cent in Icra and after the preferential allotment, its stake in Icra will come down marginally to 28.51 per cent.

The IPO will open on March 20 and close for subscription on March 23.

Though income from rating and grading services account for more than 56 per cent of the company’s consolidated revenues, Icra has other income streams that include consulting services and IT. It has three wholly owned subsidiaries, which include Icra Management Consultancy Services, Icra Techno Analytics and Icra Online. Icra vice-chairman P.K. Choudhury said the company was expanding its capabilities in areas other than credit rating. It plans to have alliances with overseas companies in consulting and IT business.