Mero Microfinance IPO collection crosses more than Rs 5.88 arba (Oversubscribed by 97 times) from 87,187 applicants till third day

Mero Microfinance has been floating its Initial Public Offering (IPO) worth Rs 6.12 crore (6.12 lakh units shares) from Falgun 27, 2072. Today is the last day of the IPO. The IPO is oversubscribed by more than 96.07 times till third day (yesterday). Mr. Parash Mani Dhakal, CEO of Global IME Capital Limited said, “The total collection of the IPO is approximately Rs 5.88 arba till today. Around 87,187 application forms were received till date.” On the very first day, the IPO was oversubscribed by 20 times collecting Rs 1.25 arba and Rs 2.61 arba on the second day with 42 times oversubscription. Interested investors were required to 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 has been appointed as 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.