ICRA Nepal assigns grade 4 to upcoming IPO issue of RSDC  Laghubitta ; Alpine Dev. Bank got grade 5 for 3:2.08 right issue

Mon, Mar 14, 2016 3:15 AM on Latest, Featured, Credit Rating,

ICRA Nepal, the credit rating agency, has assigned ‘Grade 4’ rating to the proposed Initial Public Offering (IPO) amounting NPR 40 million of RSDC Laghubitta Bikas Bank Limited (RSDC) indicating the microfinance company’s IPO of below average fundamentals.

The process to issue IPO of microfinance is on review in SEBON.

Butwal based RSDC Laghubitta is proposing to come out with its IPO of 4,00,000 numbers of equity shares of face value NPR 100/- each to be issued to general public at par.

The company has appointed NIBL Capital Markets Ltd., as issue manager for its upcoming IPO.

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.

RSDC plans to issue IPO worth Rs 4 crore (4 lakh units) to the general public. As per regulations, 5% of the IPO will be allocated to the mutual funds and 2% of the IPO will be allocated to the employees of RSDC. Remaining 93% of IPO, 3.72 lakhs units, will be allocated for the general public.

RSDC Laghubitta has earned net profit of Rs 66.25 lakh in the second quarter of the current fiscal year 2072/73.It has authorized capital of Rs 20 crore, Isuused capital of Rs 10 crore and paid up capital of Rs 6 crore. After an IPO of Rs 4 crore, paid up capital of RSDC will reach Rs 10 crore.

Also, ICRA Nepal has assigned an “[ICRANP] IPO Grade  5”, indicating poor fundamentals to the proposed  rights issue amounting NPR  82 million of  Alpine Development Bank Limited (ALDBL).

The process to issue right share of ALDBL is on review in SEBON.

The development bank proposing 3:2.085 rights issue of 820,000 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par.

NMB Capital Limited has been assigned as the issue manager for the right issue.

Alpine Development Bank has earned net profit of Rs 1.44 crore  in the second quarter of the fiscal year 2072/73.