ILFCOM IPO last day; collected Rs 108 crore in 3 days; offer oversubscribed 25 times already

ShareSansar, April 3:

The Initial Public Offering of ILFCO Microfinance Bittiya Sanstha Limited is closing today (Chaitra 20). The company had floated 400,000 unit shares to the public on Chait 17.

The IPO was already oversubscribed 13 times on the second day on Wednesday as the collection reached Rs 52.45 crore.

Civil Capital Market Limited has been appointed the issue manager for the IPO. The maximum closing date for the offer is Baisakh 2, 2072. Investors are required to invest in a minimum of 20 units and they can apply for a maximum of 1,000 units.

The company has set aside 20,000 kittas for mutual fund and 3,80,000 kittas--which includes 8,000 shares that had been earmarked for its employees for the general public.  

The microfinance company plans to raise Rs 40 million through the offer. After the IPO, the paid up capital of the company, which had posted a net profit of Rs 27,15,000 for the fiscal year 2070/2071, will reach Rs 10 crore from the current Rs 6 crore.

After the IPO, the promoter-public ratio in the company will be 60% to 40%. The net worth per share stands at Rs 106.10.

ICRA Nepal has assigned “[ICRANP] IPO Grade 4,” to the IPO, indicating below-average fundamentals. 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.