Jalpa Samudayik Laghubitta Company Analysis
About IPO
| Issue Date | Magh 21 – 25 |
| Total No of Shares | 522,000 Units |
| For Employee | 8,000 units |
| For Mutual Fund | 26,100 Units |
| For General Public | 487,900 Units |
| Total Amount | Rs 5,22,00,000 |
| Sector | Microfinance |
| Issue Manager | Prabhu Capital |
| ICRA Rating | [ICRANP-IR] BB |
About Company
Jalpa Samudayik Laghubitta Bittiya Sanstha Limited (JSLBSL) started joint operation in December 2020 following the merger of two regional level MFIs (viz. Jalpa Laghubitta Bittiya Sanstha Limited (JLBSL), 10-district MFI operating since March 2019 and Mahila Samudayik Laghubitta Bittiya Sanstha Limited (MSLBSL), another 10-district MFI operating since February 2019). JSLBSL has an NGO background with the takeover of microfinance businesses operated by FINGOs. JLBSL took over the microfinance business being conducted by Srijana Development Centre (SDC), an NGO, operating as a financial intermediary from 2003. Similarly, MSLBSL took over the microfinance business conducted by Nepal Women Community Service Centre (NWCSC), another NGO, operating as a financial intermediary from 2003.
Key Strengths:
- – Adequate track record of operations and experienced management team
- – Increased operational scale and geographical diversification through the merger
- – Moderate capitalization profile
Key Challenges:
- – Incremental asset quality concerns
- – Subdued profitability due to increased credit cost and higher cost to income ratio
- – Low penetration of credit bureau in Nepalese MFI sector; risk of overleveraged borrowers remains high
- – Regulatory risk
Capital Structure
| Particulars | Amount |
|---|---|
| Authorized Capital | 250,000,000 |
| Issued Capital | 160,000,000 |
| Current Paid-Up Capital | 107,800,000 |
| Capital after issuance of IPO | 160,000,000 |
Shareholding Structure
| Shareholders | Shares Held | % Held | Total Amount | Status |
|---|---|---|---|---|
| Promoter Shareholder | 1,078,000 | 67.38% | 107,800,000 | Paid |
| Public Shareholders | 522,000 | 32.63% | 52,200,000 | After issuance of IPO |
| Total | 1,600,000 | 100% | 160,000,000 | – |
Board of Directors
| Name | Designation |
|---|---|
| Mr. Bir Bahadur Adhikari | Chairman |
| Mr. Arjun Shrestha | Director |
| Mrs. Gita Kumari Yogi Giri | Director |
| Mrs. Sushma Gautam | Director |
| Mr. Omkar Pandey | Independent Director |
Financial Highlights
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