Laxmi Laghubitta receives Icra Grade 4 for upcoming 100% right issue

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 110 million of Laxmi Laghubitta Bikas Bank Limited (LLBS). The process to issue right share of NBIL is on review in SEBON. The microfinance company is proposing 1:1 (100%) rights issue of 1,100,000 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. NMB Capital Limited has been assigned as the issue manager for the right issue. LLBS had earned a net profit of Rs. 6.24 crore in the fourth quarter of the current fiscal year. The paid up capital of the microfinance company stands at 11 crore. After the issuance of 100 percent, the paid up capital will stand at Rs 22 crore. 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.