McGraw Hill Financial raises stake in CRISIL to 67.8% for $214M

McGraw Hill Financial Inc has acquired additional 15.1 per cent stake in Indian credit rating agency CRISIL Ltd for Rs 1,290 crore ($214 million) through a voluntary open offer, as per a stock market disclosure.

With this, McGraw Hill Financial has increased its stake in rating agency to 67.8 per cent.

As part of the voluntary open offer which closed early this month, McGraw Hill Financial  acquired 10.6 million shares at Rs 1,210 each in CRISIL. The tender period began on July 24, 2013 and concluded on August 6, 2013.

CRISIL and S&P Ratings Services first signed an affiliation agreement in 1996. The relationship was further strengthened in 1997 when McGraw Hill Financial acquired its initial equity stake in CRISIL. In 2005, McGraw Hill Financial became CRISIL’s majority shareholder.

Over the past five years, CRISIL’s revenues increased at a compound annual growth rate (CAGR) of 19.3 per cent. In 2012, CRISIL posted total revenues of Rs 978 crore, 63 per cent of which was generated outside India, and net income of Rs 220 crore or $39 million.

McGraw Hill Financial is a leading financial intelligence company, providing global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions and analytics. Its brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, and McGraw Hill Construction. The firm has around 17,000 employees in 27 countries.

McGraw Hill Financial was created in May 2013 after the sale of McGraw-Hill Education to Apollo Global Management, LLC was completed. 

(Edited by Joby Puthuparampil Johnson)

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