ICRA Nepal assigns grade 5 to upcoming 100% right issue to Lalitpur Finance

ICRA Nepal has assigned an “[ICRANP] IPO Grade 5”, indicating poor fundamentals to the proposed rights issue amounting NPR 187.94 million of Lalitpur Finance Limited (LFC). The process to issue right share of LFC is on review in SEBON. The insurance company is proposing 1:1 (100%) rights issue of 1,879,453 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. Global IME Capital Limited has been assigned as the issue manager for the right issue. LFC had reported net loss of Rs. 69.16 lakh in the third quarter of the last fiscal year. The paid up capital of the finance company stands at 18.79 crore. After the issuance of 100 percent right share , the paid up capital will stand at Rs 37.58 crore. ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.