Proposed IPO of Mero Microfinance gets ICRA Grade 4; IPO after Chhat festival

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed IPO amounting to NPR 61.20 million of Mero Microfinance Bittiya Sanstha Limited (MMF). The process to issue IPO of Mero Microfnance is on review in SEBON. Global IME Capital Limited has been assigned as the issue manager for the IPO. Mero Microfinance is a national level microfinance company promoted by 8 commercial banks and 2 development banks is planning to issue 6, 12,000 Kitta  primary shares (IPO) to the general public within second quarter of fiscal year 2072. Ram Hari Dahal, CEO of Mero Microfinance said, “The initial public offering (IPO) of Mero Microfinance will be floated in second quarter of the fiscal year 2072/73.” The company will try to float its IPO right after chhat, Mr. Dahal added. The major shareholders comprise of Global IME Bank (7%), Citizen Bank (6.9%), Janata Bank (7%), NMB Bank (7%), NIC Asia Bank (7%), Prime Bank Limited (7%), Grand Bank (7%), Siddhartha Bank (7%), H&B Development Bank (7%) and NDEP (6.5%). The company with 15 branch offices situated in 10 districts has lent Rs 40 crore to more than 13,000 customers. The microfinance has reported a net profit of Rs 4.12 crore in fourth quarter of FY 2071/72. Its earning per Share (EPS) stands at Rs 29.71 and net worth per share at Rs 131.74. The paid up capital of the company remains at Rs 13.88 crore in Q4 of FY 2071/72. 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.