Ganapati Microfinance to float 3.35 lakh unit shares of IPO soon; SEBON provides final approval

Ganapati Microfinance Bittiya Sanstha Limited has received final approval from Securities Board of Nepal (SEBON) to issue 3,35,000 unit shares as its Initial Public Offering (IPO) at Rs 100 per share.

NIBL Ace Capital Limited has been appointed as the issue manager for the IPO issuance.

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.

Guheswori Merchant Banking and Finance Ltd (32.14%) and Mr. Yubraj Bhandari (14.29%) are the major shareholders of the company.