Things to Know Before Applying for IPO of Aatmanirbhar Laghubitta; IPO Opens Today For General Public
Thu, Feb 23, 2023 9:52 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Aatmanirbhar Laghubitta Bittiya Sanstha Limited 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.
About the issue:
Aatmanirbhar Laghubitta Bittiya Sanstha Limited will be issuing its IPO to the general public from 11th Falgun to 15th Falgun, 2079. If unsubscribed, the issue can be extended up to the 25th Falgun.
The company will be issuing 1,69,755 unit shares to the general public of Rs 100 face value. The issued capital of the company is Rs. 6.23 crores of which 32.625% i.e. 203,380 unit shares worth Rs. 2.03 crores have been set aside to the general public. Out of the total 203,380 units; 10% i.e. 20,388 units were allocated for Nepalese citizens working abroad, whereas 1.5326% i.e 3,117 units have been set aside for the employees of the company, and 5% of the total offered shares i.e. 10,170 units have been set aside for the mutual funds. The remaining 1,69,755 units are for the general public.
Sunrise Capital is appointed as the issue manager for the IPO issuance. Interested investors can apply for a minimum of 10 shares to a maximum of 1000 shares.
| Aatmanirbhar Laghubitta Bittiya Sanstha Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 623,380.00 | 62,338,000.00 |
| Total Issue (General Public) | 32.63% | 203,380.00 | 20,338,000.00 |
| Issue Manager | Sunrise Capital | ||
| Issue Open Date | 11th Falgun | ||
| Issue Closing Date (earliest) | 15th Falgun | ||
| Issue Closing Date (Late) | 25th Falgun | ||
| Minimum Application | 10 | ||
| Maximum Application | 1,000 | ||
Capital Structure:
| Authorized Capital | 80,000,000.00 |
| Issued Capital | 62,338,000.00 |
| Current Paid-Up Capital | 42,000,000.00 |
| Capital after IPO Issuance | 62,338,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 420,000.00 | 42,000,000.00 | 67.375% | Already issued |
| General Public | 203,380.00 | 20,338,000.00 | 32.625% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Ms. Mira Chaudhary | Chairperson |
| Mr. Tika Ram Chaudhary | Director |
| Mrs. Mina Giri | Director |
| Mrs. Aruna Chaudhary | Director |
| Mrs. Goma Mahara | Director |
Financial Statement:
| Financial Highlights | ||||||||
|---|---|---|---|---|---|---|---|---|
| Particulars | Actual | 2078/79 (Q4) | 2079/80 (Q1) | Estimated | ||||
| 2075/76 | 2076/77 | 2077/78 | 2079/80 | 2080/81 | 2081/82 | |||
| Total Paid-Up Capital ('000) | 42,000.00 | 42,000.00 | 42,000.00 | 42,000.00 | 42,000.00 | 62,338.00 | 62,338.00 | 62,338.00 |
| Reserve & Surplus ('000) | 37,676.00 | 51,557.00 | 114,166.00 | 191,769.00 | 184,917.00 | 259,616.00 | 349,572.00 | 444,296.00 |
| Debt ('000) | - | - | - | - | - | - | - | - |
| Revenue ('000) | - | - | - | - | - | - | - | - |
| Interest Expenses ('000) | 27,822.00 | 90,918.00 | 69,607.00 | 73,818.00 | 16,697.00 | 87,414.00 | 104,270.00 | 123,989.00 |
| Net Profit ('0000) | 965,470.00 | 1,113,572.00 | 1,315,163.00 | 1,455,508.00 | 1,543,727.00 | 1,616,132.00 | 1,962,417.00 | 2,268,553.00 |
| Earnings per share (Rs.) | 19.28 | 29.56 | 148.79 | 185.43 | - | 146.67 | 151.39 | 157.03 |
| Net worth per share (Rs.) | 189.71 | 222.80 | 371.82 | 556.59 | - | 516.47 | 660.77 | 812.72 |
| Debt-Equity (times) | - | - | - | - | - | - | - | - |
| Return on Equity (%) | 121.17 | 119.03 | 84.22 | 62.26 | 68.03 | 50.20 | 47.64 | 44.78 |
CARE Ratings:
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.
Key Strengths:
- Moderate capitalization levels.
- Backup from an experienced institutional promoter.
- Financial risk profile marked by growth in revenue and profitability with moderate liquidity.
Key Weaknesses:
- Weak assets quality, although improving trend in H1FY22.
- Short track record of operation with small scale.
- Increasing dependence on Banks & Financial Institutions borrowings.
- Competition from other MFIs and Co-operatives.
- The inherent risk involved in the microfinance industry.
