IPO Analysis of Mero Microfinance BittiyaSanstha Ltd

IPO Overview Company’s Overview Mero Microfinance BittiyaSanstha Ltd. is joint initiative of 10 BFIs (8 commercial banks and 2 development banks.       Mero Microfinance (a national level microfinance) is currently running its operation from 24 districts of Nepal.

It is a decentralized institution, each branch acts as its own cost and profit center, which encourages efficient use of resources. Responsibility lies on the branch to achieve the optimum at the least cost possible and generate revenue in the form of interest as much as possible. The branches have the freedom to carry out all these activities following the Mero Microfinance Operating Manual.

Chief Operating officer (CEO)

Chief Executing officer of Mero Microfinance is Mr. Ram Hari Dahal. Mr. Dahal is know to have extensive experience in the field of microfinance since its inception in Nepal. Capital Structure & Share Holding Information Financial Highlights Company have announced its annual financial report of 5 years where report of 2070/71 and 2071/72 are actual and report of 2072/73, 2073/74 and 2074/75 are the forecasted report.    Pros and cons of this company Pros

1. Backend by good institutions (8 commercial and 2 development banks)
2. It is a decentralized institution which assists in quick review of branches performance.
3. Its plan of expansion of branches to all 75 districts (currently operating in 24 districts)
4. The average forecasted growth rate of 46 percent will benefit the investors.

Cons

1. 13 of its 30 branches are in earthquake affected areas.

  Overall the fundamentals of the company looks strong at present and promising in years to come. The investment in Mero Microfinance could be fruitful for both long and short term investors.