NMB Microfinance receives Icra Grade 4 for upcoming 120% right issue

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 110 million of NMB Microfinance Bittiya Sanstha Limited (NMBMF). The process to issue right share of NMBMF is on review in SEBON. The microfinance company is proposing  to issue 1:1.2 (120%) rights share of 5,52,000 numbers of equity shares at the face value NPR 100 each to be issued to the existing shareholders at par. Laxmi Capital Market Limited has been assigned as the issue manager for the right issue. NMBMF has earned net profit of Rs 2.98 crore in the fourth quarter of the fiscal year 2072/73 as per unaudited report. It’s paid up capital stands at Rs 7.41 crore and after the issuance of 120 percent right share it’s paid up capital will rise to Rs 16.30 crore. ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.