All You Need to Know About the FPO Issue of Kisan Laghubitta (KLBSL); Shares to Be Issued at Rs. 125 Per Unit

The FPO issue of Kisan Laghubitta Bittiya Sanstha Limited (KLBSL) is in the regulator's pipeline.

A Follow on Public Offer (FPO) is a follow up to the IPO as the name suggests. A follow-on public offer is the issuance of shares after the company is listed on a stock exchange. In other words, an FPO is an additional issue whereas an IPO is an initial or first issue.

The microfinance company wishes to issue 12,98,259 additional shares via the FPO issue at a premium price of Rs. 125 per share. Muktinath Capital is the issue manager. The microfinance company applied to the regulatory board SEBON on Ashar 29.

Kisan Laghubitta is a company listed in NEPSE. The FPO proposal has been made to accommodate for the change in the shareholding ratio after the merger/ acquisition with other non-listed microfinance companies.

Kisan Laghubitta has the authorized capital of Rs. 1 Arba, issued capital of Rs. 52.26 crores, and paid-up capital of Rs. 39.28 crores. After this FPO issue, the paid-up capital of the company will be Rs. 52.26 crores.

As of writing, KLBSL has an LTP of Rs. 1,732. In the last year, the share price of the company has gone as high as Rs. 2,042 and as low as Rs. 683 per share.

Kisan Laghubitta has published the third-quarter report of FY 2077/2078 with a massive increase of 1628.90% in Net Profit. As per the report published by the company, the net profit increased to Rs. 8.66 crores as compared to Rs. 50.11 lakhs in the corresponding quarter of the previous year. The net interest income (core revenue) has increased by 343.40% to Rs. 26.91 crores compared to Rs. 6.07 crores in the corresponding quarter of the previous year. Its annualized earnings per share (EPS) stand at Rs. 29.41. The net worth per share is Rs. 146.60.