ICRA Nepal assigns Grade 4 rating to upcoming 7.66 lakh unit right issue of Nagbeli Laghubitta; Rating indicates below-average fundamentals

ICRA Nepal Limited has assigned a [ICRANP] IPO Grade 4 (Pronounced as ICRA NP IPO Grade Four) to the Rs.76,646,315.00 Rights Issue of Nagbeli Laghubitta Bittiya Sanstha Ltd. (NBBL). Instruments with this grading are considered to have below-average fundamentals. ICRA Nepal assigns grading on a scale of Grade 1 through Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals. For the Grading categories 2, 3 and 4, the sign of + (plus) indicates their relative better position within the Grading categories concerned. IPO Grade is not a recommendation to buy, sell or hold securities nor it is a comment on the price or valuation of securities.

According to the unaudited financial report for the third quarter, the microfinance has stated that its net profit decreased to Rs 1.83 crore in third quarter as compared to Rs 2.82 crore in the corresponding quarter of the last fiscal year 2073/74.

NBBL’s paid up capital stand at Rs 7.66 crore and reserve and surplus is Rs 6.45 crore in third quarter of FY 2074/75. After the 100% right shares' issue its paid up capital will reach to Rs 15.26 crore.