The company must now apply to the Securities Board of Nepal (SEBON) for the public issuance. The company can only sell shares to the general public after receiving approval from the regulatory body SEBON.
If SEBON approves, the company intends to issue 8,50,000 shares in a public offering. The IPO is worth Rs 8.50 crores at a par value of Rs 100.
About The Company
Rastra Utthan Laghubitta is a Nepal Rastra Bank-licensed national level ‘D’ class microfinance company. It began operating as a microfinance institution on Falgun 8, 2075 BS [February 20, 2019]. Sanga, Banepa -13, Kabrepalanchowk is the headquarters.
Nepal Rural Development Organization (NeRuDO), Rastriya Banijya Bank Ltd, and Prabhu Bank, among others, are the main promoters of microfinance. The microfinance institution has a paid-up capital of Rs 17.50 crores and an authorized capital of Rs 50 crores. The capital will increase to Rs 26 crores following the issuance of an IPO worth Rs 8.50 crores.
Following the public offering, the general public will own 32.69 percent of the company. The promoters will own 67.32 percent of the company, with NeRuDO holding 28.15 percent, Rastriya Banijya Bank holding 21.15 percent, Prabhu Bank holding 11.54 percent, and other promoters holding 5.77 percent.