Things to Know Before Applying for IPO of Nepal Republic Media Limited; IPO Opens Today For General Public
Fri, Jun 9, 2023 10:53 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Nepal Republic Media Limited, the publication house of Nagarik Nepali Daily, Republica English Daily, and Shukrabar Weekly is the first media sector to issue an IPO to the general public. Incorporated in August 2008, New Republic Media Private Ltd was later converted to Nepal Republic Media Ltd in June 2021. The principal objective of the company is to disseminate the news through its various publications. The company was founded by Mr. Binod Raj Gyawali.
About the issue:
Nepal Republic Media Limited will be issuing 35,25,930 unit IPO shares to the general public of Rs 100 face value from 26th Jestha to 30th Jestha, 2080. If unsubscribed, the issue can be extended up to Ashad 08.
The issued capital of the company is Rs. 96.75 crores of which 44.99% i.e. 43,53,000 unit shares worth Rs. 43.53 crores have been set aside to the general public of which; 10% i.e. 4,35,300 units were issued to the Nepalese citizens working abroad, whereas 4% i.e 174,120 units have been set aside for the employees of the company, and 5% of the total offered shares i.e. 217,650 units have been set aside for the mutual funds. The remaining 35,25,930 units are for the general public.
Mega Capital Markets has been appointed as the issue manager for the IPO issuance. The minimum application quantity to be applied for both general and Nepalese citizens working abroad is 10 units while the maximum quantity is 500 units.
| Nepal Republic Media Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 9,675,000.00 | 967,500,000.00 |
| Total Issue (General Public) | 44.99% | 4,353,000.00 | 435,300,000.00 |
| Issue Manager | Mega Capital Markets | ||
| Issue Open Date | Jestha 26 | ||
| Issue Closing Date | Jestha 30 | ||
| Issue Late Closing Date | Ashad 08 | ||
| Minimum Application | 10 | ||
| Maximum Application | 500 | ||
Capital Structure:
| Authorized Capital | 1,000,000,000 |
| Issued Capital | 967,500,000 |
| Current Paid-Up Capital | 532,200,000 |
| Capital after IPO Issuance | 967,500,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 5,322,000.00 | 532,200,000.00 | 55.01% | Already issued |
| General Public (Including Nepalese citizens working abroad) | 4,353,000.00 | 435,300,000.00 | 44.99% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Binod Raj Gyawali | Chairman |
| Mrs. Shova Gyawali | Managing Director |
| Mr. Anjan Kumar Dahal | Director |
| Mr. Romnath Ghimire | Independent Director |
Financial Statement:
| Particulars | Financial Highlights | ||||||
| Actual | Estimated | ||||||
| 2076/77 | 2077/78 | 2078/79 | 2079/80 (Q2) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 275,100.00 | 360,400.00 | 460,400.00 | 5,322,000.00 | 532,200.00 | 967,500.00 | 967,500.00 |
| Reserve & Surplus ('000) | (414,570.27) | (463,576.14) | (510,837.42) | (472,410.75) | (463,558.92) | (409,904.49) | (316,447.78) |
| Other Capital ('000) | 112478.391 | 436902.76 | 439350.359 | 398588.922 | 462298.499 | 486763.299 | 513951.339 |
| Debt ('000) | 78,170.39 | 70,854.16 | 58,916.19 | 64,632.55 | 58,916.19 | 20,849.61 | 20,849.61 |
| Revenue ('000) | 293,342.44 | 172,192.98 | 202,650.08 | 159,196.42 | 318,674.53 | 384,569.30 | 420,743.57 |
| Interest Expenses ('000) | - | - | - | - | - | - | - |
| Net Profit ('000) | (67,668.30) | (49,005.87) | (48,208.67) | 38,426.67 | 6,517.06 | 53,654.43 | 93,456.71 |
| Earnings per share (Rs.) | (24.60) | (13.60) | (10.47) | 7.22 | 1.22 | 5.55 | 9.66 |
| Net worth per share (Rs.) | (9.81) | 92.60 | 84.47 | 86.13 | 99.76 | 107.94 | 120.41 |
| Debt-Equity (times) | 0.03 | 0.02 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 |
| Return on Equity (%) | (0.29) | (0.16) | (0.12) | 0.08 | 0.01 | 0.06 | 0.10 |
Infomerics Credit Rating Nepal Limited
Infomerics Credit Rating Nepal Limited (Infomerics Nepal) has assigned the issuer rating of IRN B+ (Is) [Single B Plus (Issuer)] to Nepal Republic Media Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.
Key Rating Strengths
- Experienced Promoters with strong execution skills.
- Strong brand presence with robust marketing and distribution network.
Key Rating Weaknesses
- Below-average financial risk profile marked by leveraged capital structure.
- Revenue and marketing stream.
- Fragmented and competitive nature of the industry.
- Elevated debtors’ position.
