ICRA Nepal assigns Grade 4 to 200% right issue of RSDC Laghubitta & Grade 5 to 100% right issue of Arun Finance

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4 and Grade 5”, indicating below average and poor fundamentals to the proposed rights issue offering (equity) of RSDC Laghubitta Bikas Bank limited and Arun Finance respectively. RSDC Laghubitta Bikas Bank Limited, is proposing to come out with 200% rights issue of 2,300,000 numbers of equity Shares of face value NPR 100/-each to be issued to existing shareholders at par. Likewise, Arun Finance is proposing to come out with 100% rights issue of 1,500,000 numbers of equity Shares of face value NPR 100/-each to be issued to existing shareholders at par. Global IME Capital Limited has been assigned as the issue manager for the right issue for Arun Finance and NIBL Capital Market Limited is the issue manager for RSDC Laghubitta. RSDC Laghubitta’s 3^rd AGM held on Chaitra 12, 2073 had endorsed 15% bonus share to its shareholders from the profits it earned in the FY 2072/73 and issuance of 200% right shares to its shareholders to increase its paid up capital to Rs 60 crore by Asadh 2075. RSDC Laghubitta  has earned net profit of Rs 1.56 crore in the third quarter of the FY 2073/74. Its paid up capital currently stands at Rs 11.50 crore. After the issuance of 200% right share, its paid up capital will reach Rs 34.5 crore. Arun Finance Limited has posted net loss of Rs 10.41 lakh in the first quarter of the fiscal year 2073/74. Its paid up capital remains at Rs 15 crore. After the issuance of 100% right share, its paid up capital will reach Rs 30 crore. 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.