IPO of Muktinath Krishi Company Opening From Today; A Thorough Look Into Company Performance
Fri, Nov 24, 2023 7:19 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Muktinath Krishi Company Limited is an associate company of Muktinath Bikash Bank, the first public agricultural company established in 2075 with the aim of playing a managerial role in the overall agricultural value chain through the "Krishak sanga Muktinath" and "Upabhoktaa sanga Muktinath" campaigns, with the goal of improving Nepal's agricultural economy. The company provides goods and services in over 70 districts nationwide, over 200 distribution channels, and Agricultural Resource centers.
About the issue:
Muktinath Krishi Company is opening the IPO issue to the general public from today i.e. on the 8th of Mangsir till the 12th of Mangsir, 2080. The issue can be extended to the 22nd Mangsir 2080 if it is not fully subscribed.
This is the first company from the agriculture sector to issue an IPO.
Out of the total 14,00,000 units; 10% i.e. 1,40,000 units have already been issued to Nepalese citizens working abroad, whereas 3% i.e. 42,000 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 70,000 units have been set aside for the different mutual fund scheme. The remaining 11,48,000 units are for the general public.
NIMB Ace Capital Limited is appointed as the issue manager. Applications can be placed for a minimum of 10 units and a maximum of 1,000 units.
Muktinath Krishi Company
|
Particulars |
Percentage |
Units |
Amount |
|
Total Capital |
100% |
70,00,000 |
70,00,00,000 |
|
Total Issue (General Public) |
20% |
14,00,000 |
14,00,00,000 |
|
Issue Manager |
NIMB Ace Capital Limited |
|
|
|
Issue Open Date |
8th Mangsir |
|
|
|
Issue Closing Date (Earliest) |
12th Mangsir |
|
|
|
Issue Closing Date (Late) |
22nd Mangsir |
|
|
|
Minimum Application |
10 units |
|
|
|
Maximum Application |
1,000 units |
|
|
Capital Structure:
|
Authorized Capital |
1,00,00,00,000 |
|
Issued Capital |
70,00,00,000 |
|
Current Paid-Up Capital |
56,00,00,000 |
|
Capital after IPO Issuance |
70,00,00,000 |
Shareholding Structure:
|
|
Number of shares |
Amount in Rs. |
Percentage |
Remarks |
|
Promoters |
56,00,000 |
56,00,00,000 |
80% |
Already issued |
|
General Public |
14,00,000 |
14,00,00,000 |
20% |
To be issued |
|
Total |
70,00,000 |
70,00,00,000 |
100% |
|
Board of Directors:
|
Name |
Position |
|
Mr. Bharat Raj Dhakal |
Chairman |
|
Mr. Sitaram Kafle |
Director |
|
Mr. Tulasi Ram Dhakal |
Director |
|
Mrs. Shikha Maskey |
Director |
|
Mr. Mohan Basnet |
Director |
|
Mr. Govinda Bahadhur Raut |
Director |
Uses of fund:
|
S.N. |
Particulars |
Amount |
|
1. |
Agriculture Related Industries |
10 Crores |
|
2. |
Agriculture Warehouse |
2 Crores |
|
3. |
Agriculture Research Firm |
2 Crores |
|
Total |
14 Crores |
|
Financial Highlights:
Financial Highlights |
|||||||
|
Particulars |
Actual |
|
Estimated |
||||
|
2076/77 |
2077/78 |
2078/79 |
2079/80 |
2080/81 |
2081/82 |
2082/83 |
|
|
Total Paid-Up Capital ('000) |
180,000,000 |
360,000,000 |
360,000,000 |
560,000,000 |
700,000,000 |
770,000,000 |
854,700,000 |
|
Reserve & Surplus ('000) |
17,019,874 |
18,919,851 |
(83,467,244) |
(54,215,575) |
8,227,913 |
56,922,287 |
117,886,722 |
|
Net Profit ('000) |
2,166,319 |
15,814,861 |
45,758,334 |
109,412,976 |
199,968,199 |
322,904,999 |
481,343,821 |
|
Earnings per share (Rs.) |
3.01 |
0.18 |
(28.54) |
3.48 |
8.73 |
14.30 |
22.96 |
|
Net worth per share (Rs.) |
109.46 |
105.26 |
76.81 |
90.32 |
101.18 |
107.39 |
113.79 |
|
Return on Equity (%) |
0.11 |
0.42 |
1.65 |
2.16 |
2.82 |
3.90 |
4.95 |
ICRA Ratings:
ICRA Nepal has reaffirmed the issuer rating of Muktinath Krishi Company Limited at [ICRANP-IR] BB- (pronounced ICRA NP Issuer Rating Double B minus). Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Key Rating Strengths:
- Established track record and diverse network of the largest promoter
- Diverse product range
- The large size of the agriculture sector provides growth opportunity
Key rating Weakness:
- Early phase of operations; long-term revenue and profitability trends yet to be established
- Steadily high working capital intensity
- Inherent risk in the agriculture business and seasonality in sales
