Kathmandu: Vijaya Laghubitta Bittiya Sanstha has opened the issuance and sale of its follow-on public offering (FPO) from Monday, aiming to rebalance its shareholding structure between promoters and the general public.
The microfinance institution is issuing the FPO to maintain a 70:30 ownership ratio between promoter shareholders and public investors. Following the merger of the former Naya Sarathi Laghubitta Bittiya Sanstha with Vijaya Laghubitta, the company’s paid-up capital reached Rs 745.04 million. At that point, the shareholding ratio stood at 74.39 percent for promoters and 25.61 percent for the public, prompting the need for adjustment through an FPO.
To achieve the targeted ownership balance, Vijaya Laghubitta is issuing 466,817 ordinary shares at a face value of Rs 100 per share, amounting to a total of Rs 46.68 million. The FPO will close as early as Poush 24 and no later than Magh 5, depending on subscription levels.
General investors can apply for a minimum of 10 shares and a maximum of 1,000 shares during the offering period. The company has appointed NMB Capital Limited as the issue and sales manager for the FPO.
For the purpose of the issuance, ICRA Nepal has assigned the microfinance institution an issuer rating of ICRA NP Issuer Rating B (at double B minus). This rating indicates a high level of risk with regard to the institution’s ability to meet its financial obligations on time.
The FPO marks an important step for Vijaya Laghubitta as it seeks to align its capital structure with regulatory and strategic requirements following its merger, while expanding public participation in its shareholding base.
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