Care Ratings Nepal Limited (CRNL), the second credit rating agency of Nepal, has provided credit ratings to the proposed rights share issue of four companies viz. Swadeshi Laghubitta Bittiya Sanstha Limited (SLBSL), Prabhu Insurance Limited (PIL), Manjushree Finance Limited (MFL) and Progressive Finance Limited (PFL).
CRNL assigns IPO grades on a scale of Grade 1 to Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals. CRNL’s IPO grading is an opinion on the fundamentals of the issuer. The grade assigned to any individual issue represents a relative assessment of the ‘fundamentals’ of the issuer.
| Company |
Facility/Instrument |
Amount (Rs. In Million) |
Rating/Grading |
Rating Action |
| Swadeshi Laghubitta Bittiya Sanstha Limited |
Rights Share Issue |
115 |
CARE-NP IPO Grade 4
[IPO Grade Four] |
Assigned
|
| Prabhu Insurance Limited |
Rights Share Issue |
316.6679 |
CARE-NP IPO Grade 3
[IPO Grade Three] |
Assigned |
| Manjushree Finance Limited |
Rights Share Issue |
36.219 |
CARE-NP IPO Grade 4
[IPO Grade Four] |
Assigned |
| Progressive Finance Limited |
Rights Share Issue |
590.1 |
CARE-NP IPO Grade 5
[IPO Grade Five] |
Assigned |
Credit Ratings to Swadeshi Laghubitta Bittiya Sanstha Limited (SLBSL)
CRNL has assigned grading of ‘CARE-NP IPO Grade 4’ to the proposed Rights Share Issue of Swadeshi Laghubitta Bittiya Sanstha Limited (SLBSL) indicating below average fundamentals. SLBSL has proposed a 100% right share issue of 11.5 lakh equity shares of face value of Rs.100 each at par aggregating Rs.11.5 crore.
Credit Ratings to Prabhu Insurance Limited (PIL)
CRNL has assigned grading of ‘CARE-NP IPO Grade 3’ to the proposed Rights Share Issue of Prabhu Insurance Limited (PIL) indicating average fundamentals. PIL has proposed 46% rights share issue of 31.67 lakh equity shares of face value of Rs.100 each at par aggregating Rs.31.67 crore.
Credit Ratings to Manjushree Finance Limited (MFL)
CRNL has assigned grading of ‘CARE-NP IPO Grade 4’ to the proposed Rights Share Issue of Manjushree Finance Limited (MFL) indicating below average fundamentals. MFL has proposed 5% rights share issue of 3,62,190 number of equity shares of face value of Rs.100 each at par aggregating Rs.3.62 crore.
Credit Ratings to Progressive Finance Limited (PFL)
CRNL has assigned grading of ‘CARE-NP IPO Grade 5’ to the proposed Rights Share Issue of Progressive Finance Limited (PFL) indicating poor fundamentals. PFL has proposed 1:2.81 rights share issue of 59.01 lakh equity shares of face value of Rs.100 each at par aggregating Rs.59.01 crore.
CARE Ratings Nepal-IPO Grading Scale
| CARE IPO grade |
Definition |
| CARE-NP IPO Grade 1 |
Strong Fundamentals |
| CARE-NP IPO Grade 2 |
Above Average Fundamentals |
| CARE-NP IPO Grade 3 |
Average Fundamentals |
| CARE-NP IPO Grade 4 |
Below Average Fundamentals |
| CARE-NP IPO Grade 5 |
Poor Fundamentals |
Note:
Modifiers {“+” (plus)} can be used with the grading symbols 2, 3 and 4. The modifiers reflect the comparative standing within the category.
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