Pokhara Finance to float 9.83 lakh units FPO shares at Rs 220/unit from Shrawan 25; Negligible rise in profit by 0.30% in Q4

- ShareSansar, August 2, 2017  on Featured , IPO News , Latest , Stock Market

Pokhara Finance Limited (PFL) will be issuing 9,83,682 units shares worth Rs  21.64 crore as part of its Further Public Offering (FPO) from Shrawan 25, 2074. The FPO will be issued at Rs 220 per unit (Rs 120 premium added to the par value of Rs 100).

The FPO applications will close on Shrawan 29, 2074. The maximum closing date for the offer is Bhadra 7, 2074.

Interested people must apply for a minimum of 10 units of shares and they can apply for up to 4,900 units shares.

NIBL Capital Markets Limited is the issue manager for the FPO.

Interested applicants can collect ASBA forms from all ASBA-approved banks around Nepal as Securities Board of Nepal (SEBON) has made ASBA application mandatory from Shrawan 2074.

ICRA Nepal has assigned IPO Grade 4 to this FPO indicating below-average fundamentals.

After the FPO, its paid up capital will reach around Rs 65.57 crore and its promoter – public shareholding structure will be maintained at 51% and 49%. Its reserve will grow by Rs 11.80 crore.

Finally, after proposed 15% right share issuance, its paid up capital will reach Rs 75.40 crore. As a national level finance company, it should hike its paid up capital to a minimum of Rs 80 crore by the end of FY 2073/74.

Meanwhile, Pokhara Finance has registered a negligible profit growth of 0.30 percent in the fourth quarter (Q4) of the fiscal year 2073/74.

As per the report published by the finance company today, its net profit has increased to Rs. 8.77 crore in the fourth quarter from Rs 8.75 crore in the corresponding quarter.

The deposits collection increased by 18.57% to Rs 3.61 arba whereas the lending surged to Rs 3.32 arba, 25.56% more than the corresponding quarter of last fiscal year.

The finance company Earning per Share (EPS) stand at Rs 15.75 from the Rs 17.82 in the corresponding quarter of the last fiscal year, net worth per share is at Rs 138.50 and P/E ratio is at 15.18 times only.

The finance company non-performing loan (NPL) slightly decline to 1.41% in fourth quarter from 1.67% in the corresponding quarter.

PFL had provided 13.5% bonus shares to its shareholders from the profit it had earned in the FY 2072/73.

Major Highlights:

Indicators (Rs in “000”) FY 2073/74 Q4 FY 2072/73 Q4 Growth (%)
Paid Up Capital                557,420                491,119               13.50
Reserve and Surplus                214,625                196,895                  9.00
Deposits            3,611,122            3,045,521               18.57
Loans and Advances            3,320,235            2,644,237               25.56
Net Interest Income                188,475                146,932               28.27
Provision                     7,845                            –
Write Back                            –                            –
Operating Profit                133,672                121,073               10.41
Net Profit                  87,777                  87,513                  0.30
Capital Adequacy Ratio (%)                     20.39                     22.20               (8.15)
NPL (%)                       1.41                       1.67             (15.57)
Base Rate (%)                     11.94                       7.89               51.33
Cost of Fund (%)                       8.51                       5.44               56.43
CD Ratio (as per NRB) )%)                     74.36                     70.82                  5.00
EPS (Annualized)                     15.75                     17.82             (11.63)
Networth Per Share                  138.50                  140.09               (1.13)
P/E Ratio                     15.18