ICRA Nepal assigns grade 4 to 50% right issue of  Srijana Finance Limited

ShareSansar September 3:

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 67.2 million of Srijana Finance Limited (SFL).

Srijana Finance Limited (SFFIL) will be issuing right shares in the ratio of 2:1. At present the development bank has a paid up capital of Rs 13.44 crore whereas after the issuance of 50 percent right shares, it’s paid up will stand at Rs 20.16 crore. NCM Merchant Banking Limited is the issue manager for the right issue of SFFIL.

Srijana Finance Limited (SFFIL) had reported a profit rise of 63.74% in the fourth quarter of the last Fiscal Year 2071/72.

The finance had a net profit of Rs 5.05 crore in the fourth quarter of the last fiscal year, whereas it had a net profit of Rs 3.08 crore in the corresponding period of the fiscal year 2070/71.

ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade .