Jeevan Bikas Laghubitta issuing 19.77 lakh units IPO share to general public from Ashad 11

Jeevan Bikas Laghubitta Bittiya Sanstha Limited will be issuing 19,77,300 units worth Rs 19.77 crore as Initial Public Offering to the general public from (Ashad 11-15, 2078). The early closing date of this issue is on Ashad 15 and if the issue is not fully subscribed till Ashad 15, then it can be extended up to Ashad 25, 2078.

Out of the offered 19,77,300 units; 0.5% of the issued capital i.e. 30,420 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 98,865 units have been set aside for the mutual funds. The remaining 18,48,015 units are for the general public.

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

Applications can be placed for a minimum of 10 units and a maximum of 1,000 units. 

After the issuance of 19,77,300 units worth Rs 19.77 crore IPO shares the general public i.e 32.50% of total capital which will together raise its paid-up capital to Rs 60.84 crore and the promoter/public ratio will be 67.50:32.50. 

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BBB- to Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLBSL), indicating a moderate degree of safety, regarding timely servicing of financial obligations with moderate credit risk.

Incorporated in August 2012 (in Office of Company Registrar), Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLBSL), started its operation from February 2019 as a licensed national level class D microfinance institution taking over the microfinance business being conducted by Jeevan Bikas Samaj (JBS), an NGO, established in September 1997 and operating as a financial intermediary from June 2002.

The company merged with Solve Laghubitta Bittiya Sanstha Limited and Garibi Nyunikaran Laghubitta Bittiya Sanstha Limited and commenced the joint operation from September 7, 2020, under the name Jeevan Bikas Laghubitta Bittiya Sanstha Limited. As of mid-January 2021, the major shareholders of JBLBSL include JBS, NGO (~30%), Prabhu Capital Limited (~13%), SR Hydro and Investment Private Limited (~9%), Social Organization for Liberal Volunteers Engagement of Nepal (SOLVE; 7%), NIC Asia Bank (~3%), Samudayik Mahila Bikas Kendra (SWDEC; ~1%). The registered and corporate office of JBLBSL is located at Katahari-2, Morang, Nepal.

The microfinance company has posted a net profit of Rs 563.93 million in the 3rd quarter company analysis of the fiscal year 2077/78.

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