Things to know for prospective investors about IPO of Samaj Laghubitta Bittiya Sanstha Limited; IPO opens from today
Thu, Aug 20, 2020 6:02 AM on IPO/FPO News,
Company Profile:
Samaj Laghubitta Bittiya Sanstha Limited (SAMAJ) is a ‘D’ Class Micro financial institution registered by Nepal Rastra Bank (NRB) under the Companies Act 2063. It started its services from Falgun-25, 2068. Its head office is located at Malangawa, Sarlahi.
Samaj Laghubitta is promoted by individuals from different backgrounds like retired bankers, chartered accountant, engineer, businessman, and teachers.
As of Mid-April, 2020, it has a total paid-up capital of Rs. 11.40 million. Till Ashad end, the company has floated a total loan of Rs. 14.90 crores.
About the issue:
Samaj Laghubitta Bitiya Sanstha Limited is issuing 86,000 units of ordinary shares worth Rs. 8,600,000 to the general public from Bhadra-04, 2077. The early closing date of the IPO issue is on Bhadra-08, 2077 and if the issue is not subscribed till Bhadra-08 then this issue can be extended up to Bhadra-18, 2077.
Out of the offered 86,000 units; 0.5% of the issued units i.e. 1,000 units worth Rs. 100,000 have been allotted for the employees and 5% of the total issue i.e. 4,300 worth Rs. 430,000 units have been allotted for the mutual funds. The remaining 80,700 units are for the general public.
Applications can be placed for a minimum of 10 units and a maximum of Rs. 5000 units. Siddhartha Capital Limited has been appointed as the issue manager for the IPO issuance.
The paid-up capital will reach Rs. 2.00 crores after the issuance of IPO. After the IPO issue; public holding will be 43% and promoters holding will be 57%.
Samaj Laghubitta Sanstha Limited:
|
Samaj Laghubitta Sanstha Limited |
|||
|---|---|---|---|
|
|
Percentage |
Units |
Amount |
|
Total Capital |
100% |
200,000 |
20,000,000 |
|
Total Issue |
43% |
86,000 |
8,600,000 |
|
Employees |
0.5% |
1,000 |
100,000 |
|
Mutual Fund |
2.15% |
4,300 |
430,000 |
|
Public |
40.35% |
80,700 |
8,070,000 |
|
Issue Manager |
Siddhartha Capital Limited |
|
|
|
Issue open date |
Bhadra-04, 2077 |
|
|
|
Issue closing date (earliest) |
Bhadra-08, 2077 |
|
|
|
Issue closing date (latest) |
Bhadra-18, 2077 |
|
|
|
Minimum application |
10 |
|
|
|
Maximum application |
5,000 |
|
|
Capital Structure:
|
Capital Structure |
|
|---|---|
|
Authorized capital |
40,000,000 |
|
Issued Capital |
20,000,000 |
|
Current paid-up capital |
11,400,000 |
|
Paid-up capital after this IPO |
20,000,000 |
Shareholding Structure:
|
Shareholding Structure |
||||
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|
Promoter shareholders |
114,000 |
11,400,000 |
57% |
Already Issued |
|
General Public |
86,000 |
8,600,000 |
43% |
To be issued |
|
Total |
200,000 |
20,000,000 |
100% |
- |
Board of Directors:
|
Board of Directors |
||
|---|---|---|
|
S. N |
Name |
Position |
|
1 |
Mr. Dilip Kumar Dhaubdel |
Chairman |
|
2 |
Mr. Binay Kumar Poudel |
Director |
|
3 |
Mr. Saroj Kumar Mahato |
Director |
|
4 |
Mr. Hari Narayan Mahato |
Director |
|
5 |
Mr. Mahesh Kumar Purbe |
Director |
Management Team:
|
Management Team |
||
|---|---|---|
|
S. N |
Name |
Position |
|
1 |
Mr. Kishori Mahato |
Chief Executive Officer |
|
2 |
Mr. Roshan Gurung |
Senior Manager |
Financial Highlights:
|
Particulars |
Actual |
Estimated* |
|||||
|---|---|---|---|---|---|---|---|
|
2073/2074 |
2074/2075 |
2075/2076 |
2076/2077* |
2076/2077 |
2077/2078 |
2078/2079 |
|
|
Total Paid-Up capital ('000) |
5,700.00 |
11,400.00 |
11,400.00 |
11,400.00 |
20,000.00 |
20,000.00 |
20,000.00 |
|
Reserve & Surplus ('000) |
(464.00) |
(1,627.00) |
(3,746.00) |
(1,317.00) |
471.00 |
4,917.00 |
9,482.00 |
|
Deposits ('000) |
- |
207.00 |
6,300.00 |
31,096.00 |
38,874.00 |
48,588.00 |
60,735.00 |
|
Loans and advances ('000) |
- |
7,264.00 |
50,654.00 |
149,059.00 |
179,663.00 |
224,552.00 |
280,657.00 |
|
Interest Income ('000) |
- |
159.00 |
3,996.00 |
19,331.00 |
28,271.00 |
34,772.00 |
42,875.00 |
|
Net Interest Income ('000) |
- |
150.00 |
1,650.00 |
6,963.00 |
11,249.00 |
12,849.00 |
16,371.00 |
|
Staff Expenses ('000) |
150.00 |
389.00 |
2,280.00 |
4,279.00 |
5,348.00 |
6,685.00 |
8,357.00 |
|
Provision for losses ('000) |
- |
73.00 |
768.00 |
2,269.00 |
1,640.00 |
537.00 |
666.00 |
|
Operating Profit ('000) |
(464.00) |
(1,152.00) |
(2,459.00) |
1,196.00 |
4,638.00 |
5,982.00 |
7,174.00 |
|
Net Profit ('000) |
(464.00) |
(1,152.00) |
(2,129.00) |
2,428.00 |
4,217.00 |
4,445.00 |
4,565.00 |
|
Earnings per share (Rs.) |
(3.40) |
(18.66) |
(18.68) |
21.29 |
23.00 |
22.23 |
22.83 |
|
Net worth per share (Rs.) |
91.85 |
85.82 |
67.14 |
88.44 |
102.36 |
124.58 |
147.41 |
(*Ashad end 2076/2077)
(* Ashad end 2076/2077)
(* Ashad end 2076/2077)
(* Ashad end 2076/2077)
Conclusion
Microfinance is one of the most pursued sectors by investors in the Nepali Capital Market and one of the reasons is quick to market price appreciation. Now, that all the information is available, will you be applying for Samaj Laghubitta Bittiiya Sanstha’s IPO?
How much to apply?
The total shares floated by Samaj Laghubitta Bittiya Sanstha Limited is 86,000 units, of which 80,700 units are available to the general public after the allocation of shares to staff and mutual fund.
If we see the recently concluded IPO of Sadhana Laghubitta Bittiya Sanstha Limited: a total of 447,849 applicants applied for the company IPO and was oversubscribed by 61.50 times and we assume that the same or even more craze prevails in Samaj Laghubitta’s IPO too. Since 10 kitta rule exists for IPO, 80,700 applicants will be lucky enough to get the shares of Sadhana Laghubitta Sanstha Limited.
Hence, if the same number of applicants (or more) who applied for the Sadhana Laghubitta’s IPO apply for this issue then there is a high probability of lottery for 10 units. Since the minimum unit is 10, it is advisable to apply only 10 units in the IPO issue of Samaj Laghubitta Bittiya Sanstha Limited.
