Upakar Laghubitta Bittiya Sanstha Limited Company Analysis
Upakar Laghubitta Bittiya Sanstha Limited is registered as a ‘D’ class Financial Institution (Microfinance Bank) with a capital of 60 million licensed by Nepal Rastra Bank. It was transferred from the microfinance program of Mahila Upakar Munch. The paid-up capital of this institution is 42.2 million. It is established on Magh 17, 2075 at Kohalpur, Banke, started its services on 1st Chaitra 2075, and registered according to the company Act on Shrawan 25th 2075. It operates 15 branches in 2 districts of province no. 5 Nepal namely Banke & Bardiya.
Upakar Laghubitta Bittiya Sanstha Limited posted a net profit of Rs 18.84 million in the 2nd quarter of the fiscal year 2078/79.
About IPO
| Issue Date | Chaitra 25-29, 2078 |
| Total No of Shares | 236,250 Units |
| For Employee | 3,281 units |
| For Mutual Fund | 11,813 Units |
| For General Public | 221,156 Units |
| Total Amount | 2.36 crores |
| Sector | Microfinance |
| Issue Manager | Nepal SBI Merchant |
| ICRA Rating | [ICRANP-IR] BB- |
Key Strengths:
- Adequate track record of operations and experienced management team
- Healthy profitability profile supported by lower credit cost and reversal of credit provisions
- Adequate capitalization profile
Key Challenges:
- Moderate asset quality
- Decreasing the share of deposits in the funding mix
- High geographical concentration
- Low penetration of credit bureau in nepalese MFI sector; risk of overlevereage borrowers remains high
- Regulatory risk
Capital Structure
| Authorized capital | 80,000,000 |
| Issued capital | 65,625,000 |
| Current paid-up capital | 42,000,000 |
| Paid-up capital after issuance of IPO | 65,625,000 |
Shareholding Structure
| Number of shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters | 420,000 | 42,000,000 | 64% | Already issued |
| General Public | 236,250 | 23,625,000 | 36% | To be issued |
| Total | 656,250 | 65,625,000 | 100% | – |
Board of Directors
| S. N | Name | Position |
|---|---|---|
| 1 | Sharada Kumari Khatri | Chief Executive Officer |
| 2 | Mrs. Laxmi KC | Head of Microfinance Department |
| 3 | Mrs. Parbati Parajuli | Head of Institutional Development and Training |
| 4 | Mr. Ram Kumar Chaudhary | Head of Finance and Information Department |
| 5 | Mr. Haru KC | Head of Monitoring and Internal Audit Department |
| 6 | Mr. Chitra Bahadur Bhandari | Head of HR Department |
Financial Highlights
About Opening Range
Since the networth of FY 2077/78 is Rs 403.91. We can expect the opening range of Upakar Laghubitta at Rs 403.91 – 1211.73.
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