Mero Microfinance collects Rs 1.25 arba on the first day, oversubscribed by 20 times

Mero Microfinance has started floating its Initial Public Offering (IPO) worth Rs 6.12 crore (6.12 lakh units shares) from Falgun 27, 2072 (yesterday).  The IPO has been oversubscribed by more than 20.42 times on the first day.

Mr.Ram Hari Dahal, CEO of Mero Microfiannce Bittya Sansatha ltd, said, "The IPO collected Rs 1.25 arba (oversubscribed by 20.42 times) on the first day. The discrepancy in the data reported yesterday was because the data from about 10 collection centers were not available."

After we got data from all collection center the amount increased from Rs 58.84 crore to Rs 1.25 arba on the first day, added Mr. Dahal.

Data for the collection till second day is yet to be finalized. The offer will close on Chaitra 1, 2072 at the earliest.

Interested investors must apply for a minimum of 50 units of share and they can apply for up to 10,000 units of share.

The microfinance company has set aside 24,480 unit shares for its employees and 30,600 unit shares for the existing six mutual fund companies. The mutual fund schemes are Nabil balance fund-1, NMB Sulav Investment Fund – 1, NIBL Sambriddhi Fund – 1,  Laxmi Value Fund -1, Siddhartha Equity Oriented Scheme, and Siddhartha Investment Growth Scheme- 1.

Global IME Capital Limited is the issue manager for the IPO.

The microfinance company plans to raise Rs 6.12 crore through the offer. After the IPO, the paid up will reach Rs 20 crore from the current Rs 13.88 crore. Its authorized capital stand at Rs 40 crore.

After the IPO, the promoter-public ratio of the company will be 69.40 % to 30. 60%.

MMFB has earned a net profit of Rs. 2.97 crore in the second quarter of the fiscal year 2072/73.Its EPS remains at Rs 42.83 and net worth per share at Rs 152.04.

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed IPO amounting to NPR 61.20 million of Mero Microfinance Bittiya Sanstha Limited.