ICRA Ltd - Stock Valuation and Financial Performance

ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.

Currently, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange.

Alliance with Moody’s Investors Service

The ultimate parent company of international Credit Rating Agency Moody’s Investors Service is the indirect largest shareholder of ICRA. The participation of Moody’s is supported by a Technical Services Agreement, which entails Moody’s providing certain technical services to ICRA. Specifically, the agreement is aimed at benefiting ICRA’s in-house research capabilities by providing ICRA with access to Moody’s global research base. Under the agreement Moody’s provides enrichment programs to ICRA employees, including access to the financial markets and related courses that are offered as part of the eLearning software licensed by Moody’s from Intuition, and provision of financial writing training seminars to designated ICRA employees.

Business area of the company

The Group is primarily engaged in the business of Rating, research and other services and Consulting, outsourced and market services etc.

Services offered

Rating Services

As an early entrant in the Credit Rating business, ICRA Limited (ICRA) is among the most experienced Credit Rating Agencies in the country. ICRA rates rupee denominated debt instruments issued by manufacturing companies, commercial banks, Non-Banking Finance Companies (NBFCs), financial institutions, public sector undertakings and municipalities, among others.

It also rates structured obligations and sector-specific debt obligations, such as instruments issued by power, telecom and infrastructure companies. Other services include credit risk rating of debt Mutual Funds, an Independent Credit Evaluation (ICE) of the residual debt in entities under the RBI’s framework for resolution of stressed assets, and rating of security receipts issued by Asset Reconstruction Companies (ARCs), as per RBI.

Industry Research

ICRA provides research services across the economy, industry and companies, complementing the credit-rating services. ICRA research covers over many industries and the reports are tailored to meet the requirements of banks, mutual funds, insurance companies, PEs or venture funds and corporates.

The reports bring forth in-depth analysis across the following areas: business and profitability outlook, industry analysis, competitive landscape, impact of regulatory environment, benchmarking of companies, industry credit profile, and company profile of listed players, among others.

ICRA’s ‘Credit Perspectives’ provide detailed analysis on the ratings assigned. These reports broadly cover the following areas: key rating considerations, rating sensitivity factors, rating rationale, company profile, business update, business outlook, financial update, and financial outlook among others.

The Services Spectrum

Risk Management

• Internal Rating Software for Banks with Basel II Compliant Models
• Credit Risk Modeling
• Expected Credit Loss Computation
• Operational Risk Management Software
• Industry Risk Scores and Reports
• Early Warning Signals

Market Data

• Daily Pricing of Active ISINs through Security Level Valuation
• Indices
• Rating Tracker
• Performance Data & Research of Live MF Schemes
• Portfolio Tracking & Analytics
• Investor Education Collateral

Grading Services

• SME Grading
• Vendor Grading
• ESCO Grading
• Other Grading Services

Knowledge Services

• Data Management using automation
• GAAP & IFRS Accounting Support and Analysis
• Financial Statement Analysis & Text Interpretation
• Structured Finance Product and Solutions Support
• Research
• IT Services

Milestones

1991

• ICRA launches Credit Rating Service on September 1, 1991.
• Investment Information and Credit Rating Agency of India Limited (later renamed ICRA Limited) is incorporated on January 16, 1991.

1993

• ICRA launches Investment Information Service and Research Publications.

1995

• ICRA launches the service of Credit Assessment for small and medium scale industries (under the Cluster Approach of the Confederation of Indian Industry).
• Also launches the service of Earnings Prospects and Risk Analysis (EPRA) for the Equity Investors.

1996

• ICRA signs an agreement with Financial Proformas Inc (FPI), now called Moody’s Risk Management Services to provide credit education, risk management software, credit research and consulting services to commercial banks, financial and investment institutions, financial services companies and mutual funds in India.

1997

• ICRA launches ICRA Bulletin: Money & Finance, a periodical publication directed towards institutions and individuals with an interest in understanding the reasons underlying policy initiatives and outcomes.

1998

• Moody’s Investors Service (Moody’s) and ICRA announce their mutual agreement to Moody’s picking up a minority stake in the equity capital of ICRA.
• ICRA introduces a Rating Methodology for the Claims Paying Ability of General Insurance companies in India.

1999

• Moody’s Investors Service (Moody’s) and ICRA sign an agreement that enables Moody’s to make an equity investment in ICRA and provide technical services to it.
• ICRA launches Grading Service for entities involved in construction projects including contractors, consultants, project owners and the project itself.
• ICRA launches Rating service for Debt Fund Scheme of Indian Mutual Funds.
• Becomes the first Indian Rating Agency to rate all Non-Life Insurance companies in the country.

2001

• Moody’s Investment Company India becomes the largest shareholder in ICRA by acquiring an additional 9% equity stake.
• ICRA and the National Real Estate Development Council (NAREDCO) jointly launch the ICRA-Naredco Grading System for real estate developers and projects.
• ICRA launches it’s Corporate Governance Ratings (CGR) for the Indian Market with focus on corporate’ business practices and quality of disclosure standards.

2002

• ICRA launches a Grading Scheme for Healthcare institutions in India.

2003

• ICRA and Online IndiaCapital.com (currently known as ICRA Online) enters into a shareholder and Subscription Agreement, besides a Technical Services agreement.
• ICRA Limited launches Project Finance Assessment/Rating Service.

2004

• ICRA enters into a ’Technical Services Agreement’ with Credit Rating & Collection, Kuwait on December 26, 2001 for a period of three years. The said agreement extended for a further period of three years with effect from December 26, 2004.
• Moody’s Investment Company India increases its equity stake to 29% in ICRA.
• ICRA launches the service of Grading of Maritime Training Institutes in India.
• ICRA launches Outsourced Services Group.
• ICRA launches the service of Grading of Mutual Fund Management Quality.

2005

• ICRA launches the NSIC-ICRA Performance and Credit Rating Scheme for Small Scale Enterprises in India.

2006

• ICRA acquires Computer Exchange (subsequently renamed as ICRA Techno Analytics).
• ICRA acquires ICRA Online.
• ICRA demerges its consulting division and transfers the same to ICRA Management Consulting Services with effect from April 1, 2005.

2007

• The equity share of ICRA gets listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on April 13, 2007.
• Moody’s Investment Company India makes additional investments in the equity shares of ICRA.
• ICRA renews its Technical Cooperation Agreement with the Credit Rating Agency of Bangladesh (CRAB) for another three years.

2008

• ICRA Management Consulting Services launches Consulting Services for Carbon management.
• ICRA Management Consulting Services and Virtus Global Partners Inc. sign a Memorandum of Understanding to jointly offer advisory/consulting services to clients based in the USA and in India.
• ICRA Techno Analytics acquires Kolkata-based software services company Axiom Technologies.
• ICRA Management Consulting Services and Dun & Bradstreet Philippines, Inc. sign a Memorandum of Understanding to jointly offer advisory/consulting services in the Philippines.

2009

• ICRA Techno Analytics, New Jersey, USA, a wholly owned subsidiary of ICRA Techno Analytics (ICTEAS) acquires 100% stake in Sapphire International (Sapphire), a Delaware Corporation based out of Trumbull, Connecticut, USA.

2010

• PT. ICRA Indonesia obtains a License from the Capital Market and Financial Institutions Supervisory Agency, Indonesia (Bapepam-LK) to launch Rating Services in Indonesia.

2011

• ICRA Lanka Limited granted registration to function as a Credit Rating Agency by the Securities and Exchange Commission of Sri Lanka.
• ICRA has been granted a letter of intent by the Securities Board of Nepal (SEBON) to establish a Credit Rating Agency in Nepal.

2012

• ICRA Nepal Limited (ICRANepal) obtains licence from the Securities Board of Nepal (SEBON) to launch Rating Services in Nepal. ICRANepal is the first credit rating company granted licence by SEBON.

2013

• IMaCS and Cambridge Systematics, Inc. sign an MoU to collaborate in providing consulting services in the Transportation sector across India, South East Asia, and Africa.
• IMaCS’ Quantitative Analytics Practice launches a pan-India bond valuation service that disseminates prices of over 4000 (illiquid) fixed income securities as a daily service.
• ICRA Techno Analytics Limited, a wholly-owned subsidiary of ICRA, through its subsidiary ICRA Global Capital Inc., increases its equity ownership stake to 75.1% in BPA Technologies, Inc. (BPA), a California-based global technology services firm focused on the areas of Enterprise Content Management (ECM), Portal and Collaboration.

2014

• Moody’s expands its ownership stake in ICRA by increasing equity ownership stake from 28.51% to 50.06% of the paid up equity share capital of ICRA.
• ICRA Techno Analytics Limited, a wholly-owned subsidiary of ICRA, through its subsidiary ICRA Global Capital Inc., increases its equity ownership stake to 100% in BPA Technologies, Inc. (BPA), a California-based global technology services firm focused on the areas of Enterprise Content Management (ECM), Portal and Collaboration.

2016

• ICRA agreed to sell its wholly owned subsidiary 'ICRA Techno Analytics' (ICTEAS) to Nihilent Technologies, a global consulting and solutions Integration Company.

2017

• ICRA in association with the India Infrastructure Finance Company (IIFCL) has launched new system for rating of infrastructure projects.
• ICRA's arm - ICRA Management Consulting Services (IMaCS) has launched a set of four fixed income indices including one on corporate bonds. This step has been taken with an aim to create more depth in the Indian debt market.

2022

• LIC announced that from September 6, 2021, to July 18, 2022, at an average cost of Rs 1,541.85 per share, it has lowered its shareholding position in ICRA from 5,60,863 equity shares to 3,31,434 shares, realising Rs 35.37 crore from the move.