Mahuli Laghubitta Bittiya Sanstha Limited’s ongoing Further Public Offering (FPO) is set to close today, Poush 9, bringing to an end a significant step in its capital restructuring process.
The microfinance institution began the FPO issuance on Poush 5 with an aim to increase the general public’s shareholding from 19.68% to at least 30% of its total issued capital. This FPO involves the issuance of 475,449.15 shares at a face value of NPR 100 per share, amounting to a total of NPR 47.54 million. The arrangement allows investors to apply for a minimum of 10 shares and a maximum of 1,000 shares. The initiative reflects the institution’s commitment to expanding its equity base and promoting wider public participation in its operations.
To assess the institution’s financial health, ICRA Nepal has rated Mahuli Laghubitta with an “ICRNP Issuer Rating Double B Minus.” This rating suggests a moderate risk in its ability to meet financial obligations, underlining the need for cautious but optimistic investor engagement.
Laxmi Sunrise Capital Limited has been appointed as the issue and sales manager for this FPO. With their expertise, the process has been smooth, ensuring accessibility for a diverse pool of potential investors.
Currently, Mahuli Laghubitta’s paid-up capital stands at NPR 322.37 million. Post-FPO, this figure is expected to rise significantly to NPR 369.92 million, bolstering the financial institution’s capacity to expand its lending capabilities and support small businesses.
The successful completion of this FPO will mark a crucial milestone in Mahuli Laghubitta’s journey toward sustainable growth. Investors and stakeholders alike are eagerly anticipating the outcomes, which are expected to reinforce the institution’s position in Nepal’s financial sector.