Unique Nepal Laghubitta to Issue 379,425 Unit FPO Shares to General Public from Jestha 11

Unique Nepal Laghubitta Bittiya Sanstha Limited (UNLB) has published an offer letter to issue its Follow on Public Offer (FPO) to the general public.

The company will be issuing 3,79,425 unit shares of Rs 100 face value from 11th Jestha, 2080. The company intends to collect Rs 3.79 crore from this FPO. The early closing date of this issue is on 16th Jestha and if the issue is not fully subscribed, it can be extended up to 25th Jestha, 2080.

The current paid-up capital of the company is Rs. 11.06 crores of which 94.01% of shares or 10,40,025 units are of the promoter shareholders in the company while 5.99% or 66,300 units shares are of the public shareholders. However, according to the Banks and Financial Institutions Act of 2073 and the NRB, at least 30% of the issued capital should be retained by public shareholders in order for that the company will be issuing 3,79,425 units of FPO shares to the general public. At present, the promoter: public share structure is a 94: 6 ratio, which after this FPO will be a 70: 30 ratio.

Note that Unique Nepal Laghubitta previously planned to issue an IPO for 2.70 lakh shares. However, after a successful merger, Unique Nepal Laghubitta and Ghodighoda Laghubitta commenced their joint operation on 30th Poush, 2078 under the name of Unique Nepal Laghubitta Bittiya Sanstha Limited. Since Ghodighoda Laghubitta was a publicly listed company, the merged company will now issue an FPO instead to adjust its shareholding ratio.

Muktinath Capital Limited has been appointed as the issue manager for the FPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 1000 units. The paid-up capital of the company will increase to Rs. 14.85 crores after the issuance of mentioned FPO shares.

CARE Ratings Nepal Limited (CRNL) has revised the rating assigned to Unique Nepal Laghubitta Bittiya Sanstha Limited’s (UNLB) issuer rating to CARE-NP B+ (Is) from CARE-NP BB- (Is). Issuers with this rating are considered to offer a high risk of default regarding the timely servicing of financial obligations, in Nepal.

Offer Letter