Icra Nepal assigns Grade 4+ to upcoming IPO issue of Forward Community Microfinance; IPO within Poush end

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4 +”, indicating below-average fundamentals to the proposed Initial Public Offering (IPO) amounting NPR 60 million of Forward Community Microfinance Bittiya Sanstha Limited (FCM). The process to issue IPO of Forward Microfinance is on review in Securities Board of Nepal (SEBON). Forward Microfinance is proposing to float 6 lakh units worth Rs 6 crore at the face value NPR 100/-each to general public at par. Nabil Investment Banking Limited has been assigned as the issue manager for the Initial Public Offering (IPO). As per Ash Narayan Chaudhary, CEO of Forward Community Microfinance, ‘We will be conducting our BOD meeting in a couple of days. Most probably, we will be floating IPO by Poush end.’ Forward Microfinance had earned a net profit of Rs. 18.68 crore in the fourth quarter of the last fiscal year 2072/73. The paid up capital of the development bank stands at Rs 14 crore. 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.