Upakar Laghubitta Bittiya Sanstha Limited Opening IPO From Today; Here's Everything You Need To Know About The Issue
Thu, Apr 7, 2022 4:31 PM on IPO/FPO News, Company Analysis, Latest,
Company Info:
Upakar Laghubitta Bittiya Sanstha Limited is registered as a 'D' class Financial Institution (Microfinance Bank) with a capital of 60 million licensed by Nepal Rastra Bank. It was transferred from the microfinance program of Mahila Upakar Munch. The paid-up capital of this institution is 42.2 million. It is established on Magh 17, 2075 at Kohalpur, Banke, started its services on 1st Chaitra 2075, and registered according to the company Act on Shrawan 25th 2075. It operates 15 branches in 2 districts of province no. 5 Nepal namely Banke & Bardiya.
About the issue:
Upakar Laghubitta Bittiya Sanstha Limited will be issuing 236,250 units worth Rs 2.36 crores as Initial Public Offering to the general public from (Chaitra 25- Chaitra 29, 2078). The early closing date of this issue is on Chaitra 29 and if the issue is not fully subscribed till Chaitra 29, then it can be extended up to Baisakh 09, 2079.
Out of the offered 236,250 units; 0.5% of the issued capital i.e., 3,281 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e., 11,813 units have been set aside for the mutual funds. The remaining 221,156 units are for the general public.
Nepal SBI Merchant Banking 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 236,250 units worth Rs 2.36 crore IPO shares the general public i.e., 36% of total capital will together raise its paid-up capital to Rs 6.56 crore, and the promoter/public ratio will be 64:36.
|
Upakar Laghubitta Sanstha Limited |
|||
|---|---|---|---|
|
|
Percentage |
Units |
Amount (Rs.) |
|
Total Capital |
100% |
420,000 |
42,000,000 |
|
Total Issue |
36% |
236,250 |
23,625,000 |
|
Employees |
0.5% of Issued Capital |
3,281 |
328,100 |
|
Mutual Fund |
5% of IPO Units |
11,813 |
1,181,300 |
|
Public |
93.61% of IPO Units |
221,156 |
22,115,600 |
|
Issue Manager |
Nepal SBI Merchant Banking Limited |
||
|
Issue open date |
Chaitra 25, 2078 |
||
|
Issue closing date (earliest) |
Chaitra 29, 2078 |
||
|
Issue closing date (late) |
Baisakh 09, 2079 |
||
|
Minimum application |
10 |
||
|
Maximum application |
1,000 |
||
Capital Structure
|
Capital Structure |
|
|---|---|
|
Authorized capital |
80,000,000 |
|
Issued capital |
65,625,000 |
|
Current paid-up capital |
42,000,000 |
|
Paid-up capital after issuance of IPO |
65,625,000 |
Shareholding Structure
|
Shareholding Structure |
||||
|---|---|---|---|---|
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|
Promoters |
420,000 |
42,000,000 |
64% |
Already issued |
|
General Public |
236,250 |
23,625,000 |
36% |
To be issued |
|
Total |
656,250 |
65,625,000 |
100% |
- |
Board of Directors
|
Management Team |
||
|---|---|---|
|
S. N |
Name |
Position |
|
1 |
Sharada Kumari Khatri |
Chief Executive Officer |
|
2 |
Mrs. Laxmi KC |
Head of Microfinance Department |
|
3 |
Mrs. Parbati Parajuli |
Head of Institutional Development and Training |
|
4 |
Mr. Ram Kumar Chaudhary |
Head of Finance and Information Department |
|
5 |
Mr. Haru KC |
Head of Monitoring and Internal Audit Department |
|
6 |
Mr. Chitra Bahadur Bhandari |
Head of HR Department |
ICRA Rating:
ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to ULBSL. 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
- Healthy profitability profile supported by lower credit cost and reversal of credit provisions
- Adequate capitalization profile
Key Challenges:
- Moderate asset quality
- Decreasing the share of deposits in the funding mix
- High geographical concentration
- Low penetration of credit bureau in nepalese MFI sector; risk of overlevereage borrowers remains high
- Regulatory risk
Financial Highlights
|
Financial Highlights |
|||||||
|---|---|---|---|---|---|---|---|
|
Particulars |
Actual |
Estimated* |
|||||
|
2075/2076 |
2076/2077 |
2077/2078 |
2078/2079 (Q2) |
2078/2079 |
2079/2080 |
2080/2081 |
|
|
Paid-up capital ('000) |
42,000.00 |
42,000.00 |
42,000.00 |
42,000.00 |
65,625.00 |
65,625.00 |
65,625.00 |
|
Reserves & Surplus ('000) |
67,803.71 |
69,569.02 |
127,644.64 |
145,812.00 |
198,595.00 |
312,886.00 |
483,695.00 |
|
Borrowings ('000) |
320,838.04 |
262,763.47 |
766,713.87 |
956,928.00 |
833,713.00 |
820,713.00 |
893,213.00 |
|
Deposits ('000) |
516,774.43 |
688,870.44 |
800,464.33 |
898,790.00 |
1,211,920.00 |
1,796,450.00 |
2,570,286.00 |
|
Loans & Advances ('000) |
927,573.59 |
1,016,154.52 |
1,635,089.58 |
2,131,130.00 |
2,274,205.00 |
3,081,248.00 |
4,397,784.00 |
|
Net Interest Income ('000) |
31,511.22 |
82,792.50 |
125,623.46 |
66,064.00 |
167,943.00 |
241,599.00 |
334,466.00 |
|
Net Profit ('000) |
14,297.09 |
2,482.62 |
58,842.65 |
18,843.00 |
70,950.00 |
114,291.00 |
170,809.00 |
|
Net worth per share |
261.43 |
265.64 |
403.91 |
447.17 |
403.00 |
577.00 |
837.00 |
|
Earnings per share |
34.04 |
5.91 |
140.00 |
89.73 |
108.00 |
174.00 |
260.00 |
|
Non-performing Loan (%) |
- |
- |
- |
- |
2.66% |
2.47% |
2.34% |
|
Return on Equity (%) |
13.02% |
2.22% |
34.66% |
20.07% |
26.80% |
30.16% |
31.06% |
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 Upakar Laghubitta Bittiya Sanstha Limited's IPO?
The total shares floated by Upakar Laghubitta Bittiya Sanstha Limited is 236,250 units, of which only 221,156 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 Upakar Laghubitta Bittiya Sanstha Limited's IPO too. Since the 10 kitta rule exists for IPO; 22,115 applicants will be lucky enough to get the shares of Upakar 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 a lottery for 10 units. Since the minimum unit is 10, it is advisable to apply only 10 units in the IPO issue of Upakar Laghubitta Bittiya Sanstha Limited.
