Ganapati Microfinance Bittiya Sanstha Limited was issuing 3,35,000 units ordinary shares worth Rs 3.35 crore to the general public from Baisakh 9, 2076. The closing date of this IPO issue was on Baisakh 12, 2076.
Out of the offered 3,35,000 units; 5,175 units have been allotted for the employees of the company and 16,750 units have been allotted for the mutual funds. The remaining 3,13,075 units are for the general public.
NIBL Ace Capital Limited has been appointed as the issue manager for the IPO issuance. As per the issue manager, 330,151 applicants have applied for 6,772,420 units till closing, oversubscribing the issue by 21.63 times. However, this is the unverified data and includes disqualified applicants as well.
The allotment has been scheduled for this Friday (Baisakh 20, 2076). Since the issue has been oversubscribed, only 31,307.5 people will be allocated 10 units on a lottery basis while the rest won't get any.
The paid-up capital will reach Rs 10.35 crore after the issuance of the public shares. After the IPO issue; public holding will be 32.37% and promoters holding will be 67.63%.
Care Ratings Nepal Limited has assigned grading of “CARE-NP IPO Grade 4” to the proposed Initial Public Issue of Ganapati Microfinance Bittiya Sanstha Limited (GMBSL). “CARE-NP IPO Grade 4” indicates Below Average Fundamentals.
Ganapati Microfinance Bittiya Sanstha Ltd. is a “D” class National Level Microfinance Institution incorporated on June 27, 2016, licensed by Nepal Rastra Bank (NRB) on November 15, 2016 and commenced its operation from Dec 9, 2016 under Bank and Financial Institution Act 2006.
It is primarily engaged in providing microfinance loan based on the Joint Liability Group (JLG) model with each group consisting of minimum five members. It has its registered office in Suklagandaki Municipality, Tanahun, Nepal. As on October 17, 2018 it has loan portfolio of Rs 620.08 Mn and deposit base of Rs 153.75 Mn; and have 11,402 members and 8338 borrowers. The microfinance currently provides microfinance services to more than 14 thousand individuals from its 28 branches located in 15 districts.
Guheswori Merchant Banking and Finance Ltd (32.14%) and Mr. Yubraj Bhandari (14.29%) are the major shareholders of the company.