Things to know for prospective investors about IPO of Nepal Infrastructure Bank Limited (NIFRA); IPO opens from today
Fri, Jan 15, 2021 6:00 AM on IPO/FPO Result News, Exclusive, Financial Analysis, Company Analysis,
Company Profile:
With a vision to be the nodal financial institution of the nation for infrastructure development, the bank started its commercial operation in March- 06, 2019. Nepal Infrastructure Bank Limited (NIFRA) is established as a National Level Infrastructure Development Bank with the focused objective of accelerating the development of infrastructure of the nation. The bank obtained the operating license from Nepal Rastra Bank on Feb-11, 2019. The bank focuses on infrastructure financing by raising resources from the domestic and international markets through equity, debt, mezzanine, and sector fund structures, issuing on-shore and off-shore bonds and debenture.
The bank was promoted by 41 promoters which include the Government of Nepal with 17% stake, Private sectors (35%), Life Insurance Companies (27%), Nepal Reinsurance Company Limited (4%), and individuals related to leading private business houses of Nepal.
As of 1st quarter of FY 2077/2078, the company reported a total interest income of Rs. 28.95 crores with a net profit of Rs. 18.01 crores. The company reported earnings per share of Rs. 6 and Net worth per share of Rs. 115.12.
About the Issue:
The company is issuing 8 crore units as IPO to the general public at the par value of Rs. 100 per share to raise a capital worth Rs. 8 Arba.
The company is set to issue a total of 8,00,00,000 units of shares from Magh-02, 2077. A total of 1,60,000 units i.e., 0.20% worth Rs, 1.60 crores is segregated for the employees of the company, and a total of 40,00,000 units shares worth 40.00 crores i.e., 5% of total units is segregated for a mutual fund. The remaining 75,840,000 unit shares are for the general public. The earliest closing date is Magh-06, 2077. If the issue is not subscribed till the earliest closing date then the issue will be extended till Magh-16, 2077.
NIBL Ace Capital Limited has been appointed as the issue manager.
|
Nepal Infrastructure Bank Limited |
|||
|---|---|---|---|
|
Particulars |
Percentage |
Units |
Amount |
|
Total Capital |
100% |
200,000,000 |
20,000,000,000 |
|
Total Issue to general public (IPO) |
40% |
80,000,000 |
8,000,000,000 |
|
Employees |
0.20% of IPO Units |
1,60,000 |
16,000,000 |
|
Mutual Fund |
5% of IPO Units |
40,00,000 |
400,000,000 |
|
Public |
95.80% |
75,840,000 |
7,584,000,000 |
|
Issue Manager |
NIBL Ace Capital Limited |
|
|
|
Issue Open Date |
Magh -02, 2077 |
|
|
|
Issue Closing Date (earliest) |
Magh -06, 2077 |
|
|
|
Issue Closing Date (late) |
Magh- 16,2077 |
|
|
|
Minimum application |
10 |
|
|
|
Maximum application |
20,000,000 |
|
|
ICRA Rating:
ICRA Nepal has assigned as issuer rating of [ICRANP-IR] BBB pronounced ICRA NP issuer rating triple B) to Nepal Infrastructure Bank Limited.
Grading Strengths:
- Strong ownership and seasoned management team
- Positive demand outlook gave the need to reduce interest rate volatility in long-term project financing
- Lean organization and lower operating cost could increase competitiveness on the lending front
- Strong capitalization remains a comfort against probable credit shocks
Key Challenges:
- The inherent risk in infrastructure financing and high concentration risk could lead to asset quality concern
- Raising long-term funds at competitive rates remains a challenge
- Challenges in scaling up credit portfolio could suppress medium-term profitability outlook
Board Members:
|
Board of Directors |
|
|---|---|
|
Name |
Position |
|
Mr. Mr. Anuj Agrawal |
Chairman |
|
Mr. Shree krishna Nepal |
Director |
|
Mr. Chandra Prasad Dhakal |
Director |
|
Mr. Lalmani Joshi |
Director |
|
Management Team |
|
|---|---|
|
Name |
Position |
|
Mr. Bhupendra Pandey |
Officiating Chief Executive Officer |
|
Mr. Surya Bahadur Tamang |
Deputy General Manager-Business |
|
Mr. Binaya Nath Neupane |
Deputy General Manage |
|
Mr. Suwarn Kumar Singh |
Head-Risk Management |
|
Mr. Rabin Shrestha |
Head-Infrastructure Financing |
The objective of IPO Issuance:
|
The objective of the Issue |
|
|---|---|
|
Loan and Advances |
Rs. 4,320,000,000 |
|
Other Investment |
Rs. 3,680,000,000 |
|
Total |
Rs. 8,000,000,000 |
Capital Structure:
|
Capital Structure |
|
|---|---|
|
Authorized Capital |
40,000,000,000 |
|
Issued Capital |
20,000,000,000 |
|
Current Paid-Up Capital |
12,000,000,000 |
|
Capital after IPO Issuance |
20,000,000,000 |
Shareholding Pattern:
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|---|---|---|---|---|
|
Promoter Shareholders |
120,000,000 |
12,000,000,000 |
60% |
Already Issued |
|
General Public |
80,000,000 |
8,000,000,000 |
40% |
To be issued |
|
Total |
200,000,000 |
20,000,000,000 |
100% |
- |
Financial Highlights:
|
Particulars |
Actual |
Estimated* |
||||
|---|---|---|---|---|---|---|
|
2074/2075 |
2075/2076 |
2076/2077 |
2077/2078 |
2078/2079 |
2079/2080 |
|
|
Total Paid-Up Capital ('000) |
6,000,000.00 |
12,000,000.00 |
12,000,000.00 |
20,000,000.00 |
21,600,000.00 |
22,900,000.00 |
|
Reserve & Surplus ('000) |
119,700.00 |
788,971.00 |
1,634,826.00 |
2,299,345.00 |
2,276,052.00 |
2,931,272.00 |
|
Deposit from customers ('000) |
0.00 |
200,000.00 |
250,020.12 |
1,000,000.00 |
3,000,000.00 |
9,565,000.00 |
|
Loan and Advances ('000) |
0.00 |
76,495.77 |
575,356.34 |
18,012,221.00 |
29,446,976.00 |
39,813,330.00 |
|
Interest Income ('000) |
179,410.53 |
1,135,791.89 |
1,253,682.72 |
1,355,446.00 |
3,084,197.00 |
3,943,733.00 |
|
Interest Expenses ('000) |
0.00 |
2,351.37 |
23,018.50 |
66,885.00 |
602,413.00 |
966,809.00 |
|
Operating Profit ('000) |
161,249.04 |
161,414.19 |
1,101,697.64 |
1,039,239.00 |
2,370,108.00 |
2,890,157.00 |
|
Net Profit ('000) |
119,700.37 |
669,270.30 |
847,145.19 |
725,217.00 |
1,656,705.00 |
2,020,220.00 |
|
Earnings per share (Rs.) |
2.00 |
6.1 |
7.06 |
5.58 |
7.67 |
8.82 |
|
Net Worth per share ('000) |
51.00 |
106.57 |
113.62 |
117.69 |
110.54 |
112.8 |
|
Return on Equity ('000) |
1.96% |
5.23% |
6.21% |
3.25% |
6.94% |
7.82% |
How much to apply?
For details refer Biggest IPO on the Way: For How Many Units Should I Apply?
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