The SEBON has authorized the issuance of 97,000 shares for 97 lakh rupees to BPW Laghubitta Bittiya Sanstha. The approved and issued capital for microfinance is 3 crore rupees, while the paid-up capital is 2 crore, 3 lakh rupees.

About the IPO Issue

The company will soon issue the IPO to general public, locals and the Nepalease working abroad. You can apply the IPO via meroshare app or via filling the form in the bank.

Symbol             BPW
Issue ManagerMega Capital
Number of Share Units approved97000
Face ValueNRs. 100
Current Paid Up CapitalNRs. 2,03,00,000
IRCA RatingBB-
Paid of Capital after IPO IssueNRs. 3,00,00,000

About the Company

BPW Laghubitta Bittiya Sanstha, an MFI with a license to conduct business in the province of Bagmati, was founded in September 2018 and started operations in April 2019. After being granted a license, BPW purchased the microfinance activities of Business and Professional Women Patan (BPW Patan), an NGO established in March 1995 that has served as a financial middleman since 2002. The headquarters of BPW are in Banepa-8 Kavre, Nepal, along with the company’s registered office.

In April 2019, BPW began operations by assuming control of the microcredit division of the previous BPW Patan (one of the promoters NGO). As a financial intermediary, BPW Patan began its MFI operations in 2002. As of mid-July 2018, its portfolio base consisted of NPR 24 million in credit and NPR 16 million in deposits. The top management team and board of BPW are made up of seasoned professionals with relevant expertise in the banking and microfinance industries, which is still a plus. After the changeover in September 2018, the business only operated five branches throughout five districts.

IRCA Rating:

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB- (pronounced “ICRA NP Issuer Rating Double B-minus”) to BPWLaghubitta Bittiya Sanstha Limited (BPW). Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Key Strengths

  • Long track record and experienced management team
  • Lower average ticket size and insured portfolio
  • Adequate capitalisation profile

Key Weaknesses

  • Limited scale and branch network
  • Modest profitability due to high operating expenses and high credit cost
  • Funding profile dependent on external borrowings
  • Low penetration of credit bureau in Nepalese MFI sector; risk of overleveraged borrowers remains high