Jeevan Bikas Laghubitta Bittiya Sanstha Ltd. is set to issue 19.77 lakhs of shares to the general public from Ashad 11 to Ashad 15, 2078.
IPO Details
| Issuing company | Jeevan Bikas Laghubitta Bittiya Sanstha Ltd. |
| Issue size (32.5% of issued capital) | 19,77,300 units |
| Issue rate | Rs 100 |
| Reserved for mutual funds (5%) | 98,865 units |
| Reserved for staffs (0.5%) | 30,420 units |
| Available to general public (27%) | 18,48,015 units |
| Issue opening date | 2078-03-11 |
| Issue closing date | 2078-03-15 |
| Issue manager | NMB Capital Ltd. |
About the company
Morang-based, Jeevan Bikas Laghubitta Bittiya Sanstha Ltd.(JBLBSL) is a national level ‘D’ class financial institution, operating since 2075 BS. The company has recently merged with Solve Laghubitta Bittiya Sanstha Limited and Garibi Nyunikaran Laghubitta Bittiya Sanstha Limited and commenced its joint operation from September 7, 2020. Its product and service include deposit, credit, micro insurance, remittance, and digital banking.
The institutional promoters of JBLBSL include Jeevan Bikash Samaj, (NGO), Prabhu Capital Limited, SR Hydro and Investment Private Limited, Social Organization for Liberal Volunteers Engagement of Nepal (SOLVE) NIC Asia Bank, and Samudayik Mahila Bikas Kendra. Mr. Bikramraj Subedi and Mr.Sanjay Kumar Mandal are the Chairperson and CEO of the company respectively.
Financial Highlights (As of 2076/77 audited financial statement)
| Accumulated Profit | Rs 35,42,61,537.89 |
| Reserve and surplus | Rs 69,27,75,384.07 |
| Net worth per share | Rs 305.27 |
| Earnings Per Share(EPS) | Rs 104.97 |
Strong part of the company
- JBLBSL has a Long track history of micro-financing service under the support of promoter NGO Jeevan Bikash Samaj( from 2022 to 2019) and afterward as D class MFI
- JBLBSL has a big network and service coverage with a total of 138 branches across the country
- The company has strong profitability and sustainability ratios, many of which are top in the industry
Challenges for the company
- JBLBSL is exposed to capital management risk with CAR of 8.39 %( As of 2077/78 Q3) which is near to minimum regulatory requirement of 8%. However, this situation may ease after IPO.
- The company has geographical concentration risk despite branch expansion. A major chunk of its business comes from the first three licensed districts (~69% of the total lending portfolio and ~72% of the total deposit portfolio as of mid-January 2021)
Bottom Line
ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BBB- to Jeevan Bikas Laghubitta Bittiya Sanstha Limited, indicating a moderate degree of safety, regarding timely servicing of financial obligations with moderate credit risk. Looking at the moderate issuer rating, strong company fundamentals, and recent craze in IPO subscription, investors can definitely apply for this IPO at minimum risk.
Additional resources;
Company Prospectus at –http://jeevanbikasmf.com/wp-content/uploads/2021/06/Final-Prospectus-Jeevan-Bikas-2078_03_01.pdf
Website link at – http://jeevanbikasmf.com/en/
