Asha Laghubitta Bittiya Sanstha Limited (ALBSL) has successfully concluded its initial public offer (IPO) on Friday afternoon, 8th February 2019 (26th Magh 2075). The company had floated its IPO issues of 0.674 million unit shares worth of Rs 67.4 million at the face value of Rs 100 per unit share to the general public for four working days, starting from Friday 1st February 2019 (18th Magh 2075) lasting till Tuesday 5th February 2018 (22nd Magh 2075) just early this week.
According to Prabhu Capital Ltd., its issue manager, the IPO has been oversubscribed by about 18.39 times with an overwhelming public response, attracting over 309,782 applications worth Rs 1.58 billions (Rs 1.58 arabs) demanding over 11.58 million unit shares till the final day of the issue. Of the total applications, 677 applications for 32,900 unit shares were rejected due to errors and the remaining 309,105 valid applications were included in the allotment process of which only 62,993 (20.38%) lucky applicants are allocated the mandatory 10 unit shares through the lottery system, leaving the a larger number of remaining 2,46,122 (79.62%) applicants empty handed.
Of the total 674,000 unit shares, the company has set aside 10,370 unit shares (1.54%) for its employees and 33,700 unit shares (5%) for the existing mutual fund companies.
The company is floating the remaining 6,29,930 unit shares (93.46%) to the general public alone. The provision of application for the interested public investors was a minimum of 10 and a maximum of 3,370 unit shares.
The company has a current paid-up capital of Rs 140 million (Rs 14 crores) that has been raised from its promoters. After the issuance of this IPO, Rs 67.4 million (Rs 6.74 crores) will be added to reach Rs 207.4 million (Rs 20.74 crores) and 32.50% of the total issue capital will be held by the ordinary shareholders while the remaining 67.50% will be held by the promoters. In its recent second quarter (Q2) of the current fiscal year 2075/76, the microfinance has reported a massive increase in its net profit to Rs 8.165 million (Rs 81.65 lakhs) from a loss of Rs 2.677 million (Rs 26.77 lakhs) in the corresponding quarter of the previous fiscal year 2074/75. It also reports its net interest income increase from Rs 20.9 million (Rs 2.09 crores) in the corresponding quarter in 2074/75 to Rs 49 million (Rs 4.90 crores) in this Q2 of 2075/76.
In the prospectus published for this IPO issue, the company has mentioned to keep its paid-up capital amount after the issuance the same till 2077/78, meaning it has no plans as of yet to provide any bonus shares for a coming couple of years. Regarding its reserve and surplus, it has reported its negative reserve in the fiscal year 2073/74 that turned into positive from 2074/75 and projects to increase continuously till 2077/78. The company projects to make the net worth per share of Rs 105.23 in the current fiscal year 2075/76, Rs 115.5 in the next fiscal year 2076/77 and Rs 123.35 in the fiscal year 2077/78. Also, it has projected to make its earning per share (EPS) of Rs 13.29 in the current fiscal year 2075/76, Rs 30.27 in the fiscal year 2076/77 and Rs 32.85 in the fiscal year 2077/78.
Check the link below to read/download the IPO ALLOTMENT MODEL:
Established under the Companies Act, 2063, the microfinance has an authorized capital of Rs 300 million (Rs 30 crores) while its issued capital stands at Rs 207.4 million (Rs 20.74). its registered office is located in Kakani - 8, Nuwakot. Currently, the company provides its services through its 43 branches. The main investors of the company are Prabhu Investment Pvt. Ltd. and Nepal Investment Pvt. Ltd. each holding 0.2 million unit shares. As of now, the microfinance company has 4 people as directors representing the promoter shareholders, 2 of which after this IPO issuance, will represent the ordinary shareholders with 1 new independent director added.
CRNL has assigned a grading of "CARE-NP IPO Grade 4" to the IPO indicating below average fundamentals.
Check the link below to read/download the IPO CARE-NP IPO Grading:
Check the link below to read/download the IPO ISSUE OPEN NOTICE:
Check the link below to read/download the IPO ISSUE CLOSE NOTICE:
DOWNLOAD LINK
Check the link below to read/download the PROSPECTUS:
Check the link below to read/download the OFFER LETTER:
Check the link below to read/download the IPO ALLOTMENT RESULT LIST:
Check the link below to read/download the SECOND QUARTER (Q2) FINANCIAL REPORT FY 2075/76:
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