Manaslu Bikas Bank to float IPO

Tue, Jul 23, 2013 12:00 AM on IPO/FPO News,

ShareSansar, July 23:


Manaslu Bikas Bank Limited, a three district development bank, is set to launch its IPO from August 11.

The bank has got a go ahead from SEBON for going public with 360,000 unit shares priced at Rs 100 per share. The bank has appointed Growmore Merchant Bank as the issue manager for the IPO.

The bank’s paid up that currently stands at Rs 8.4 crore, is expected to reach Rs 12 crore after the IPO.

The bank has branches in Gorkha, Tanahu and Chitwan and provides services through its 4 branches and three extensions counters. It has installed one ATM at the main branch in Gorkha.

Nepal Rastra Bank’s existing policy allows development banks with presence only in three districts to operate with a paid up capital of just Rs 10 crore.

However, as Manaslu had issued rights share worth Rs 1.4 crore earlier, the bank is now obligated to increase its paid up to more than the prescribed level so as to meet the mandatory ratio of 70 percent to 30 percent between the promoters and general public shares.

The Offer Letter for the IPO will be released on July 29.

As per a source, the bank has made net profit of Rs 56 lakh for the FY 2069/70.

ICRA Nepal, the rating agency of Nepal has graded this proposed IPO as ‘[ICRANP] IPO Grade 4’, a below average rating.


Financial Highlights of the Bank as of 3rd Quarter, 2069/70.


Particulars

Amounts in Rs'000'

Paid up capital

84,000.00

Reserve and Surplus

(1,114.41)

Deposits

432,276.53

Loan and Advance

378,634.06

Operating Profit

1,922.88

Net Profit

1,223.65