Things To Know For the Prospective Investors Of Nesdo Samriddha Laghubitta; IPO Opens From Today
Wed, Feb 23, 2022 6:24 AM on Company Analysis, Latest,
Company Info:
NESDO Sambridha Laghubitta Bittiya Sanstha Ltd is Promoted by National Educational & Social Development Organization, NESDO Nepal. NSLBSL was incorporated under Company Act-2063 as a Public Limited Company with the mandate to operate as a “D” Class National Level Microfinance Institutions within the framework of The Bank & Financial Institutions Act (BFIA)-2073. The Authorized Capital of NSLBSL is Rs.50 Crore and its Issued and Paid-Up Capital is Rs.17,21,25,000/-. NESDO Nepal holds 51% of total shares in NSLBSL. In Total there are 83 Promoters of NSLBSL. The Promoter of NSLBSL is NESDO Nepal, Prabhu Bank, and 81 People from different sections of the Society. NSLBSL started its operation on 5th March 2019, as of that date all the microfinance activities of NESDO Nepal were transferred to NESDO Sambridha Laghubitta Bittiya Sanstha Ltd. At present, NSLBSL served 78 thousand ultra-poor families residing in the remote area of Nepal through its 56 branch offices located in 17 districts.
About the issue:
Nesdo Samriddha Laghubitta Bittiya Sanstha Limited will be issuing 8,28,750 units worth Rs 8.28 crore as Initial Public Offering to the general public from (Falgun 11- Falgun 15, 2078). The early closing date of this issue is on Falgun 15 and if the issue is not fully subscribed till Falgun 15, then it can be extended up to Falgun 25, 2078.
Out of the offered 8,28,750 units; 0.5% of the issued capital i.e. 12,750 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 41,437 units have been set aside for the mutual funds. The remaining 774,563 units are for the general public.
Global IME Capital Limited has been appointed as the issue manager for the IPO issuance.
Applications can be placed for a minimum of 10 units and a maximum of 1,000 units.
After the issuance of 8,28,750 units worth Rs, 8.28 crore IPO shares the general public i.e 32.5% of total capital which will together raise its paid-up capital to Rs 25.50 crore and the promoter/public ratio will be 675:32.5.
|
Nesdo Samriddha Laghubitta Sanstha Limited |
|||
|---|---|---|---|
|
|
Percentage |
Units |
Amount (Rs.) |
|
Total Capital |
100% |
2,550,000 |
255,000,000 |
|
Total Issue |
32.50% |
828,750 |
82,875,000 |
|
Employees |
0.5% of Issued Capital |
12,750 |
1,275,000 |
|
Mutual Fund |
5% of IPO Units |
41,437 |
4,143,700 |
|
Public |
93.46% of IPO Units |
774,563 |
77,456,300 |
|
Issue Manager |
Global IME Capital Limited |
||
|
Issue open date |
Falgun 11, 2078 |
||
|
Issue closing date (earliest) |
Falgun 15, 2078 |
||
|
Issue closing date (late) |
Falgun 25, 2078 |
||
|
Minimum application |
10 |
||
|
Maximum application |
1,000 |
||
Capital Structure
|
Capital Structure |
|
|
Authorized capital |
500,000,000 |
|
Issued capital |
255,000,000 |
|
Current paid-up capital |
172,125,000 |
|
Paid-up capital after issuance of IPO |
255,000,000 |
Shareholding Structure
|
Shareholding Structure |
||||
|---|---|---|---|---|
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|
Promoters |
1,721,250 |
1,721,250,000 |
67.50% |
Already issued |
|
General Public |
828,750 |
828,750,000 |
32.50% |
To be issued |
|
Total |
2,550,000 |
255,000,000 |
100% |
- |
Board of Directors
|
Board Of Directors |
||
|---|---|---|
|
S.N |
Name |
Position |
|
1 |
Sabitri Khatri Chhetri Lamichhane |
Chairman |
|
2 |
Bishwa Prakash Prasai Thakuri |
Director |
|
3 |
Ratna Prasad Adhikari |
Director |
|
4 |
Resham Khatri |
Director |
|
5 |
Prem Sharma Paudel |
Director |
ICRA Rating:
ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B Plus) to NSLBSL. Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.
Key Strengths:
- Adequate track record of operations and experienced management team
- Strong capitalization profile and low gearing ratio
- Decent portion of external funding from member deposits
- Healthy profitability profile supported by strong NIMs, lower credit cost, and scale economies
Key Challenges:
- Moderate asset quality
- Geographical concentration risk
- Low penetration of credit bureau in Nepalese MFI sector, risk overleveraged borrowers remains high
- Regulatory risk
Financial Highlights:
|
Particulars |
Acutal |
Estimated* |
||||||
|---|---|---|---|---|---|---|---|---|
|
2074/2075 |
2075/2076 |
2076/2077 |
2077/2078 |
2078/2079* |
2077/2078 |
2078/2079 |
2079/2080 |
|
|
Paid-up capital ('000) |
70,000.00 |
70,000.00 |
172,125.00 |
172,125.00 |
172,125.00 |
331,500.00 |
447,525.00 |
626,535.00 |
|
Reserves & Surplus ('000) |
1,299.00 |
143,532.80 |
277,882.00 |
435,191.00 |
540,382.00 |
594,441.00 |
845,316.00 |
1,197,525.00 |
|
Borrowings ('000) |
0.00 |
211,027.00 |
312,500.00 |
389,273.00 |
333,439.00 |
969,793.00 |
1,666,200.00 |
2,348,127.00 |
|
Deposits ('000) |
0.00 |
1,784,015.00 |
2,085,939.00 |
2,243,052.00 |
2,371,291.00 |
3,701,036.00 |
5,921,657.00 |
8,882,486.00 |
|
Loans & Advances ('000) |
0.00 |
3,111,124.00 |
3,202,890.00 |
3,357,366.00 |
3,844,863.00 |
5,755,621.00 |
9,093,792.00 |
13,327,811.00 |
|
Net Interest Income ('000) |
1,299.00 |
129,777.00 |
405,698.00 |
413,677.00 |
187,578.00 |
507,003.00 |
773,488.00 |
1,124,780.00 |
|
Net Profit ('000) |
1,299.00 |
78,155.00 |
97,888.00 |
163,309.00 |
107,386.00 |
262,636.00 |
410,436.00 |
594,387.00 |
|
Net worth per share |
1.86 |
111.65 |
56.87 |
94.88 |
124.78 |
79.23 |
91.71 |
94.87 |
|
Earnings per share |
101.86 |
305.05 |
261.44 |
352.83 |
413.95 |
279.32 |
288.89 |
291.13 |
|
Non-performing Loan (%) |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
4.27% |
2.78% |
1.94% |
|
Return on Equity (%) |
1.82% |
36.60% |
21.75% |
26.89% |
30.14% |
28.36% |
31.75% |
32.59% |
2078/2079* represents the figure for the second quarter.
Conclusion
Microfinance is one of the most followed sectors by investors in the Nepali Capital Market and one of the reasons is quick-to-market price appreciation. Now, that all the information is available, will you be applying for Nesdo Samriddha Laghubitta Bittiya Sanstha Limited's IPO?
Nesdo Samriddha Laghubitta Bittiya Sanstha, which is backed up by strong promoters shareholders, is expected to give IPO investors impressive returns under the assumptions of the basic theory of demand and supply.
The total shares floated by Nesdo Samriddha Laghubitta Bittiya Sanstha Limited is 8,28,750 units, of which only 7,74,563 units are available to the general public after the allocation of shares to staff and mutual fund.
If we see the recently concluded IPO, a total of more than 26 lakh applicants applied for the company IPO and we assume that the same or even more craze prevails in Nesdo Laghubitta Laghubitta Bittiya Sanstha Limited's IPO too. Since the 10 kitta rule exists for IPO; 77,456 applicants will be lucky enough to get the shares of Nesdo Samriddha Laghubitta Bittiya Sanstha Limited.
Hence, if the same number of applicants (or more), i.e., 26+ lakhs apply for this issue then there is a high probability of lottery for 10 units. Since the minimum unit is 10, it is advisable to apply only 10 units in the IPO issue of Nesdo Samriddha Laghubitta Bittiya Sanstha Limited.
