Things to know for prospective investors about IPO of Mahila Laghubitta Bittiya Sanstha Limited; high chance of lottery for 10 units
Thu, Feb 11, 2021 4:25 PM on IPO/FPO News, Company Analysis, Stock Market, Exclusive,
Company Info:
Mahila Laghubitta Bittiya Sanstha Limited (MLBSL) is a D-class financial institution that received an operating license from Nepal Rastra Bank on 2075/06/22 to operate under the bank and financial institution act, 2073. It has commenced its financial transaction from 2075/01/01. Its central office is located in Sanga-13 Kavre. It is providing micro-financial services to the low income & underprivileged peoples through our branch offices which are located in different parts of country.
About the issue:
Mahila Laghubitta Sanstha Limited is issuing 4 lakhs units ordinary shares worth Rs. 4.00 crores to the general public from Magh 30, 2077. The early closing date of this IPO issue is on Falgun 05, 2077. If the issue is not subscribed till Falgun 05 then the issue can be extended to Falgun 14, 2077.
Out of offered 400,000 units; 0.5% of issue capital i.e., 5,000 units have been allotted for the employees of the company, and 5% of the total offered to the general public i.e., 20,000 units have been allotted for the mutual funds. The remaining 375,000 units are for the general public.
Applications can be placed for a minimum of 10 units and a maximum of 1,000 units.
Nepal SBI Merchant Banking Limited has been appointed as the issue manager for the IPO issuance.
After the IPO issue, public holding will be 40% and promoters holding will be 60%.
|
Mahila Laghubitta Sanstha Limited |
|||
|---|---|---|---|
|
|
Percentage |
Units |
Amount (Rs.) |
|
Total Capital |
100% |
1,000,000 |
100,000,000 |
|
Total Issue |
40% |
400,000 |
40,000,000 |
|
Employees |
0.5% of Issue Capital |
5,000 |
500,000 |
|
Mutual Fund |
5% of IPO Shares |
20,000 |
2,000,000 |
|
Public |
34.5% of IPO Shares |
375,000 |
37,500,000 |
|
Issue Manager |
Nepal SBI Merchant Banking Limited |
||
|
Issue open date |
Magh 28, 2077 |
||
|
Issue closing date (earliest) |
Falgun 04, 2077 |
||
|
Issue closing date (late) |
Falgun 14, 2077 |
||
|
Minimum application |
10 |
||
|
Maximum application |
1,000 |
||
ICRA Rating:
ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer Rating Double B) to Mahila Laghubitta Bittiya Sanstha Limited (MLBSL). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.
Key Strengths:
- Adequate track record of operations
- Regulated Institutional promoter along with experienced management team
- Healthy portfolio growth supported by expansion in franchise
- Adequate presence in the target geography
- Adequate capitalization profile
- Fair asset quality
Key Challenges:
- Changed regulation could impact future profitability profile
- Low penetration of credit bureau in Nepalese MFI sector
- Low share of deposits in the funding mix
- Regulatory environment
Source: ICRA Rating
Capital Structure:
|
Capital Structure |
|
|---|---|
|
Authorized capital |
200,000,000 |
|
Issued capital |
100,000,000 |
|
Current paid-up capital |
60,000,000 |
|
Paid-up capital after issuance of IPO |
100,000,000 |
Shareholding Structure:
|
Shareholding Structure |
||||
|---|---|---|---|---|
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|
Promoters |
600,000 |
60,000,000 |
60% |
Already issued |
|
General Public |
400,000 |
40,000,000 |
40% |
To be issued |
|
Total |
1,000,000 |
100,000,000 |
100% |
|
Board of Directors:
|
Board Of Directors |
||
|---|---|---|
|
S.N |
Name |
Position |
|
1 |
Mr. Tara Kunwar |
Chairman |
|
2 |
Mr. Kumar Gyawali |
Director |
|
3 |
Dr. Iman Singh Gurung |
Director |
|
4 |
Mrs. Indu Kumari Karki |
Director |
|
5 |
Mrs. Kopila Pokhreli |
Director |
Management Team:
|
Management Team |
||
|---|---|---|
|
S.N |
Name |
Position |
|
1 |
Mr. Krishna Prasad Neupane |
Chief Executive Officer |
|
2 |
Mr. Hari Prasad Gautam |
Assistant CEO-Finance |
|
3 |
Mr. Ishwor Rokka |
Senior Manager |
|
4 |
Mr. Bal Bahadur Rana |
Manager-Internal Audit Dept |
|
5 |
Mr. Prem Thapa |
Manager-Planning |
|
6 |
Mr. Buddhi Sagar Neupane |
Assistant Manage-HR |
|
7 |
Mr. Sumit Baskota |
Senior Officer-IT Dept |
Financial Highlights:
|
Particulars |
Actual |
Estimated* |
||||
|---|---|---|---|---|---|---|
|
2074/2075 |
2075/2076 |
2076/2077 |
2077/2078 |
2078/2079 |
2079/2080 |
|
|
Paid-up capital ('000) |
39,523.61 |
60,000.00 |
60,000.00 |
100,000.00 |
100,000.00 |
100,000.00 |
|
Reserves & Surplus ('000) |
-153.67 |
95,291.86 |
127,893.63 |
193,813.00 |
284,652.00 |
429,877.00 |
|
Borrowings ('000) |
0.00 |
788,836.20 |
1,012,398.17 |
1,911,044.00 |
3,411,044.00 |
3,911,044.00 |
|
Deposits ('000) |
0.00 |
480,288.93 |
660,555.97 |
940,904.00 |
1,213,874.00 |
1,566,408.00 |
|
Loans & Advances ('000) |
0.00 |
1,328,143.30 |
1,738,262.78 |
3,011,516.00 |
4,892,081.00 |
6,021,139.00 |
|
Net Interest Income ('000) |
142.03 |
65,250.79 |
128,282.46 |
154,656.00 |
264,484.00 |
375,017.00 |
|
Net Profit ('000) |
-153.67 |
24,236.12 |
34,713.50 |
71,676.00 |
124,264.00 |
197,093.00 |
|
Net worth per share |
99.61 |
258.82 |
313.16 |
294.00 |
385.00 |
530.00 |
|
Earnings per share |
-0.39 |
40.39 |
57.85 |
51.23 |
65.37 |
104.82 |
|
Non-performing Loan (%) |
0.00% |
0.00% |
0.00% |
0.26% |
0.41% |
0.41% |
|
Return on Equity (%) |
-0.39% |
15.61% |
18.48% |
24.40% |
32.31% |
37.20% |
Conclusion
Microfinance is one of the most pursued sectors by investors in the Nepali Capital Market and one of the reasons is quick to market price appreciation. Now, that all the information is available, will you be applying for Mahila Laghubitta Bittiya Sanstha's IPO?
Conclusion:
The total shares floated by Mahila Laghubitta Bittiya Sanstha Limited is 4,00,000 units, of which only 3,75,000 units are available to the general public after the allocation of shares to staff and mutual fund.
If we see the recently concluded IPO of Greenlife Hydropower and Nepal Infrastructure Development Bank (NIFRA), a total of more than 14 lakh applicants applied for the company IPO and we assume that the same or even more craze prevails in Mahila Laghubitta Bittiya Sanstha's IPO too. Since the 10 kitta rule exists for IPO; 37,500 applicants will be lucky enough to get the shares of Mahila Laghubitta Bittiya Sanstha Limited.
Hence, if the same number of applicants (or more) who applied for the NIFRA and Greenlife Hydropower IPO apply for this issue then there is a high probability of lottery for 10 units. Since the minimum unit is 10, it is advisable to apply only 10 units in the IPO issue of Mahila Laghubitta Bittiya Sanstha Limited.
