Merger wind still blowing strong among microfinance companies; Manakamana Laghubitta and Smart Laghubitta to merge in 1 : 1 ratio and to issue around Rs 4 crore of IPO shares

Bhairahawa based Manakamana Laghubitta and Ghorahi based Smart Laghubitta have signed a MoU for merger. The MoU was signed between chairman of both institutions Ajay Goenka and Shanta Chaudhari respectively on Bhadra 21, 2076.

Manakamana Laghubitta with its 10 working districts has paid up value of Rs 6.82 crore while Smart with Rs 1.40 crore that will take the combined paid up value to Rs 8.22 crore. The microfinance institution is also mulling to issue IPO shares around Rs 4 crore to general public following which its paid up value will jump up to Rs 12.04 crore, as per the media statement. Manakamana has 16 branches while Smart has 7 branches under their network.

The newly formed entity will be named as Manakamana Smart Laghubitta with Manakamana’s main office as the main office of the new microfinance. The merged entity will have chairman and CEO from present day Manakamana Microfinance.

Similarly the merged board will have 33 members and the merger process will conclude within 4 months of receiving approval from NRB, as per the agreement. The institutions have agreed to merge in share swap ratio of 1;1.

Manakamana Laghubitta has credit disbursement figure of Rs 47 crore, deposit collection of Rs 11 crore and 8K members while Smart has loan figure of Rs 14 crore, deposit collection of Rs 7 crore and member base of 7K.