Moody’s ups open offer price to acquire additional 26.5% of ICRA’s stake by 20%

Ratings agency ICRA’s promoter Moody's has raised its open offer price to Rs 2400 per share from Rs 2000 earlier on the back of company’s strong financials, high return ratios and high cash-flow generation. New-York based credit rating agency, Moody’s, in February 2014 had made an open offer to acquire an additional 26.5% stake in the company to take its holding stake to 55%. This move may help Moody's to tap a higher market share in country. Moody’s is the single largest shareholder in ICRA with a 28.51% stake held through its subsidiary Moody’s Investment Co. Among others, Birla Sun Life AM holds 8.91%, LIC owns 6.69%, Templeton has 5.38%, GIC holds 5.23%and PNB owns 5.01% stake in ICRA. Meanwhile, Citigroup Global Markets is the banker to Moody’s for the transaction. Moody’s contributes 15% of ICRA’s revenues. ICRA provides offshore rating services to Moody’s. ICRA is the third-largest rating company in the country by revenues.