IPO of Gurans Laghubitta opens on Monday; Information you need to make your decision

Company Profile

Gurans Laghubitta Bittiya Sanstha was registered in 2063 BS and the operation started from 2073 BS. The Microfinance is currently providing microcredit facilities to 11,700 rural members through its 23 branches located at 10 different districts of province 1.

According to the company prospectus, the company has deposit balance of Rs 8 crore and 50 lakh till now and it has disbursed loans and advances worth Rs 57 crore.

The regulations allow issues below Rs 3 crore to not require credit rating. Gurans Laghubitta is floating IPO worth Rs 2.5 crore and thus hasn't done credit rating.

Objective of the issue

About the issue

Gurans Laghubitta Bittiya Sanstha Limited is issuing 2,50,000 units ordinary shares worth Rs 2.50 crore to the general public from Baisakh 16, 2076. The early closing date of this IPO issue is on Baisakh 20, 2076 and if the issue is not subscribed till Baisakh 20 then this issue can be extended upto Jestha 14, 2076.

Out of the offered 2,50,000 units; 3,875 units (0.5% of issued capital) have been allotted for the employees of the company and 12,500 units (5% of total units allocated for general public) have been allotted for the mutual funds. The remaining 2,33,625 units are for the general public.

Applications can be placed for minimum 10 units and maximum 500 units. Application can be placed from the financial institutions providing C-ASBA facility or through Meroshare.

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

The microfinance institution currently has issued capital of Rs.  7.75  crore and paid up value of Rs 5.25 crore. After the issuance of the IPO shares, the paid up value will scale up to Rs 7.75 crore.

Capital structure

Shareholding composition

Primary Shareholders

Board of directors

Management Team

Financial performance

Conclusion

The IPO of Gurans Laghubitta Bittiya Sanstha is the fifth public issue that is happening back-to-back this week. So far the response to IPO issues of microfinance companies is overwhelming.

The fundamental information and the estimated financial projection of the company are presented above. Since the share supply is high in the market and considering the general trend, it is advisable to apply for 10 units only.