After Mirmire, ILFCOM 2nd microfinance to announce IPO; issue worth 4cr

ShareSansar March 13:

The proposed Initial Public Offer of ILFCO Microfinance and Bittiya Sanstha Limited (ILFCOM) worth Rs 4 crore has been approved by SEBON on March 11.

The IPO will be floated in the month of Chaitra, said Bhism Chalise, the CEO of Civil Capital Market Limited. Meanwhile, a senior official at the ILFCOM said that owing to some formal procedural works, the IPO may come out only by the last week of Chaitra.  

The news about ILFCOM’s IPO comes close on the heels of the IPO announcement by Mirmire Microfinance, which is set to hit the market on Chaitra 9.  

As part of its IPO, Mirmire Microfinance Development Bank Limited will be floating a total 60,000 units of ordinary shares at face value of Rs 100. The company has allocated 1,200 units shares for the employees, 3000 for mutual funds and 55,800 units for general public.

Mirmire’s paid-up capital will rise to Rs 2 crore from the existing Rs 1.40 crore after the IPO.

Meanwhile, ILFCOM has decided to float 400,000 numbers of equity shares as part of the IPO of face value NRs 100. The paid up capital of ILFCOM, which is at Rs 6 crore at present, will rise to Rs 10 crore after the IPO.

ICRA Nepal has assigned “[ICRANP] IPO Grade 4,” indicating below-average fundamentals to the proposed rights issue amounting NPR 40 million of ILFCO. 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.

While Growmore Merchant Banker has been appointed the issue manager for the IPO of Mirmire Microfinance, the IPO of ILFCOM will be managed by Civil Capital Market Limited.