SEBON adds IPO issue of two microfinance companies to its pipeline; total of 8.35 Lakh units await approval for issue

In the latest list of Initial Public Offerings (IPO) in pipeline published by Securities Exchange Board of Nepal (SEBON), two new microfinance companies have been added.

Nepal Agro Laghubitta Bittiya Sanstha Limited has proposed to issue 161,778 units of shares as IPO with the motive of raising capital of Rs.1.61 Crore. Nepal SBI Merchant Banking Limited has been appointed as the issue manager for this purpose. Nepal Agro Laghubitta Bittiya Sanstha Ltd. has authorized capital of Rs.48,000,000 divided into 480,000 equity shares and issued capital of Rs.33,600,000 divided  into 336,000  equity shares of Rs.100 each, out of which 70% is promoters’ share and remaining 30% is public share. The paid up capital of the company stands Rs 1.742 crore. 

Similarly, another microfinance company, Infinity Laghubitta Bittiya Sanstha Limited is looking to issue IPO worth Rs.6.74 Crore through issue of 674,000 units of shares. The appointed issue manager for this purpose is Civil Capital Market Limited. The company has authorized capital of Rs. 500 million, issued capital of Rs. 200 million and paid – up capital of Rs 140 million. Capital has been raised from 88 different promoters throughout the country having different occupations and backgrounds. These promoters have been categorized under “A” group and have ownership of 70 percent of shares.

Both these issues are currently under preliminary review by SEBON and they might receive the approval for issue within the coming months.