SEBON Gives Final Approval For IPO Issue of Aatmanirbhar Laghubitta; Company to Issue IPO Worth Rs 2.03 Crores Soon

The Securities Exchange Board of Nepal (SEBON) has approved the IPO proposal of Aatmanirbhar Laghubitta Bittiya Sanstha Limited (AATMA) on Poush 17, 2079.

The company is looking to raise capital worth Rs 2.03 Crores through the issue of 203,380 units of shares at a par value of Rs.100 per share to the general public. The promoter/public ratio will be 67.375: 32.625 after this IPO. The total paid-up capital of this company will increase to Rs 6.23 crore after the IPO issuance.

Sunrise Capital has been appointed as the issue manager for the IPO issuance.

CARE Ratings Nepal Limited (CRNL) has assigned a rating of ‘CARE-NP B+ (Is)’ [Single B Plus (Issuer)] to Aatmanirbhar Laghubitta Bittiya Sanstha Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.

Aatmanirbhar Laghubitta is a “D” class Province Level microfinance institution. It was incorporated on November 20, 2018, licensed by Nepal Rastra Bank on February 12, 2019, and commenced operations on April 15, 2019. Initially, the company commenced its business as Gramin Mahila Utthan Kendra (Rural Women Development Center-RWDC), a financial intermediary. However, lately, the company initiated its operation as a separate financial entity. It is primarily engaged in providing microfinance loans based on the Joint Liability Group (JLG) model with each group consisting of a minimum of five members.