Things to Know Before Applying for IPO of BPW Laghubitta; IPO Opens Today For General Public
Thu, Mar 2, 2023 7:09 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
BPW Laghubitta Bittiya Sanstha Limited came into existence in September 2018 and started its operations in April 2019 as an MFI, licensed to operate in Bagmati Province. After its licensing, BPW took over the microfinance business being conducted by Business and Professional Women Patan (BPW Patan), an NGO, established in March 1995 and operating as a financial intermediary since 2002. It is promoted by 72 promoters (71 individual promoters and one NGO BPW Patan with a ~1% equity stake). Mr. Pradeep Koirala is the Acting Chief Executive Officer of the company. The registered and corporate office of BPW is in Banepa -8 Kavre, Nepal.
About the issue:
BPW Laghubitta Bittiya Sanstha Limited will be issuing its IPO to the general public from 18th Falgun to 23rd Falgun, 2079. If unsubscribed, the issue can be extended up to the 2nd Chaitra.
The company will be issuing 80,950 unit shares to the general public of Rs 100 face value. The issued capital of the company is Rs. 3 crores of which 32.33% i.e. 97,000 unit shares worth Rs. 97 lakhs have been set aside to the general public. Out of the total 97,000 units; 10% i.e. 9,700 units were for Nepalese citizens working abroad, whereas 1.50% i.e 1,500 units have been set aside for the employees of the company, and 5% of the total offered shares i.e. 4,850 units have been set aside for the mutual funds. The remaining 80,950 units are for the general public.
Mega Capital Markets is appointed as the issue manager for the IPO issuance. Interested investors can apply for a minimum of 10 shares to a maximum of 1000 shares.
| BPW Laghubitta Bittiya Sanstha Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 300,000.00 | 30,000,000.00 |
| Total Issue (General Public) | 32.33% | 97,000.00 | 9,700,000.00 |
| Issue Manager | Mega Capital Markets | ||
| Issue Open Date | 18th Falgun | ||
| Issue Closing Date (earliest) | 23rd Falgun | ||
| Issue Closing Date (Late) | 2nd Chaitra | ||
| Minimum Application | 10 | ||
| Maximum Application | 1,000 | ||
Capital Structure:
| Authorized Capital | 100,000,000.00 |
| Issued Capital | 30,000,000.00 |
| Current Paid-Up Capital | 20,300,000.00 |
| Capital after IPO Issuance | 30,000,000.00 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 203,000.00 | 20,300,000.00 | 67.670% | Already issued |
| General Public | 97,000.00 | 9,700,000.00 | 32.330% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mrs. Ambika Lal Shrestha | Chairperson |
| Mr. Kishor Bhai Bajracharya | Director |
| Mr. Pushpa Ram Shrestha | Director |
| Mr. Sabin Pradhanang | Director |
| Mr. Tirtha Ratna Konajo | Independent Director |
Financial Statement:
| Financial Highlights | ||||||||
|---|---|---|---|---|---|---|---|---|
| Particulars | Actual | 2078/79 (Q4) | 2079/80 (Q1) | Estimated | ||||
| 2075/76 | 2076/77 | 2077/78 | 2079/80 | 2080/81 | 2081/82 | |||
| Total Paid-Up Capital ('000) | 20,300.00 | 20,300.00 | 20,300.00 | 20,300.00 | 20,300.00 | 30,000.00 | 30,000.00 | 31,500.00 |
| Reserve & Surplus ('000) | 353.13 | (2,920.44) | (2,684.91) | (153.48) | (2,740.14) | 357.00 | 5,112.00 | 8,785.00 |
| Debt ('000) | - | - | - | - | - | - | - | - |
| Revenue ('000) | - | - | - | - | - | - | - | - |
| Interest Expenses ('000) | 480.88 | 4,653.15 | 8,350.26 | 16,202.45 | 5,326.78 | 17,123.00 | 22,414.00 | 26,339.00 |
| Net Profit ('0000) | (1,855.33) | (3,259.78) | 235.54 | 2,531.43 | (2,586.66) | 3,041.00 | 4,755.00 | 5,252.00 |
| Earnings per share (Rs.) | (9.41) | (16.06) | 1.16 | 12.47 | (12.74) | 10.14 | 15.85 | 16.69 |
| Net worth per share (Rs.) | 101.74 | 85.61 | 86.78 | 99.24 | 86.50 | 101.19 | 117.04 | 127.89 |
| Debt-Equity (times) | - | - | - | - | - | - | - | - |
| Return on Equity (%) | (0.90) | (1.88) | 0.13 | 1.26 | (1.47) | 1.00 | 1.35 | 1.30 |
ICRA NEPAL:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP Issuer Rating Double B minus) to BPW Laghubitta Bittiya Sanstha Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Credit strengths:
- Long track record and experienced management team.
- Lower average ticket size and insured portfolio.
- Adequate capitalization profile.
Credit challenges:
- Limited scale and branch network.
- Modest profitability due to high operating expenses and high credit costs.
- Moderate asset quality.
- Funding profile dependent on external borrowings.
- Low penetration of credit bureaus in the Nepalese MFI sector; the risk of overleveraged borrowers remains high.
- Regulatory risk.
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