Credit Analysis and Research Limited(CARE) has acquired 75.13 per cent stake in Kalypto Risk Technologies Private Ltd(KRTL), a company providing risk management software solutions with exclusive focus on banking & financial services domain, for an undisclosed sum, the company said in a statement.
“We believe that KRTL, which currently has running product installations, would help to reduce the time to market new product offerings for CARE and give additional revenue streams,” O.V. Bundellu, chairman of CARE commented on the acquisition.
Incorporated in 2005, KRTL is a Navi Mumbai-based firm that designs and develops risk management solutions. The company offers Kalypto/Credit, a platform that integrates the credit risk information and Kalypto/Ops, an application that provides operational risk assessment, measurement, and analysis services.
American Appraisal was the exclusive financial advisor to KRTL for the transaction.
“This acquisition will further deepen our own understanding and experience in bank loan ratings. CARE presently does not have a presence in the risk model domain and envisages filling this gap in its product offering through this acquisition,” D.R. Dogra, managing director and CEO of CARE said.
Last month CARE announced that it is coming up with its maiden public offering where early investors like IDBI Bank and SBI are selling their shares. CARE has filed its draft red herring prospectus (DRHP) with market regulator SEBI for an IPO where the company is looking to dilute over 25 per cent stake.
The major shareholders in the company include IDBI Bank (25.79 per cent), Canara Bank (22.81 per cent), SBI (9.61 per cent), IL&FS Financial Services (8.99 per cent) and The Federal Bank (6.2 per cent).
The rating agency is also backed by private equity players such as Aditya Birla Private Equity and Milestone Religare besides Bajaj Holdings and Investment Ltd.
Incorporated in 1993 and headquartered in Mumbai, CARE focuses on rating rupee-denominated debt instruments and bank loans and facilities, which include short, medium, and long-term debt instruments. The research firm also produces customized research reports and industry research reports covering 28 sectors and industry risk evaluation reports covering 76 sectors on a subscription basis and offers technical assistance services to rating agencies.