Aatmanirbhar Laghubitta Bittiya Sanstha Limited has published an offer letter to issue its Initial Public Offering (IPO) to Nepalese citizens working abroad and the general public.
The company will be issuing 1,69,755 unit shares to the general public of Rs 100 face value from 11th Falgun to 15th Falgun, 2079. Meanwhile, 20,338 units of IPO shares have been allocated for Nepalese citizens working abroad, the issue of which will open from 16th Magh and conclude on 1st Falgun, 2079. Note that for the general public, if the issue is not subscribed by the early closing date, the issue can be extended till 25th Falgun. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 6.23 crores of which 32.625% i.e. 203,380 unit shares worth Rs. 2.03 crores have been set aside to the general public. Out of the total 203,380 units; 10% i.e. 20,388 units have been allocated for Nepalese citizens working abroad, whereas 1.5326% i.e 3,117 units have been set aside for the employees of the company, and 5% of the total offered shares i.e. 10,170 units have been set aside for the mutual funds. The remaining 1,69,755 units are for the general public.
Sunrise Capital 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 1,000 units. After the IPO the promoter-public share ratio will be 67.375: 32.625.
CARE Ratings Nepal Limited (CRNL) has assigned a rating of ‘CARE-NP B+ (Is)’ [Single B Plus (Issuer)] to Aatmanirbhar Laghubitta Bittiya Sanstha Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.
Aatmanirbhar Laghubitta is a “D” class Province Level microfinance institution. It was incorporated on November 20, 2018, licensed by Nepal Rastra Bank on February 12, 2019, and commenced operations on April 15, 2019. Initially, the company commenced its business as Gramin Mahila Utthan Kendra (Rural Women Development Center-RWDC), a financial intermediary. However, lately, the company initiated its operation as a separate financial entity. It is primarily engaged in providing microfinance loans based on the Joint Liability Group (JLG) model with each group consisting of a minimum of five members.