Domestic rating agency Credit Analysis & Research Ltd (CARE) has filed its draft red herring prospectus (DRHP) with Sebi (Securities and Exchange Board of India) about a year ago for the proposed initial public offer(IPO), comprising sale of about 72 lakh shares by its shareholders.
Sebi has issued its final observations on the draft offer documents on September 24, as per the latest update by the market regulator. The proposed offer is being made by the selling shareholders and there will be no fresh issue of shares by CARE. As a result, all the proceeds would go to the selling shareholders and not to the company. The main promoters of CARE are two domestic banks, IDBI Bank and Canara Bank, and the company competes with other rating agencies like Crisil and ICRA, which are already listed on the stock exchanges.