When a company wants to go in public they have to issue the Initial Public Offering (IPO). There are many hydropower companies, life, and non-life insurance company, and other companies are issuing IPO in Nepal. Companies need money for expansion, or to increase the increase their production capacity then they issue a certain percentage of share to the general public at a certain price.
Recently Mahila Laghubitta issued the IPO to the general public and it is already listed in Nepal Stock Exchange Limited as well and the current market price of Mahila Laghubitta is more than Rs 5000 per share. IPO of microfinance in Nepal is good from an investor perspective because investors get good value after listing at NEPSE. From Ashad 12, 2078 Jeevan Laghubitta Sanstha Limited is going to issue the IPO for general public.
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About Jeevan Laghubitta Bittiya Sanstha
Jeevan Laghubitta Sanstha Limited was established with the vision of ‘poverty-free Nepal’. They got a license from Nepal Rastra Bank on Falgun 3, 2075 to operate as a ‘D’ category bank of Nepal. JBLBSL started its financial transaction from 2075 Falgun 16.
The major objective of this organization is to conduct income-generating activities by providing financial services to the grassroots level. JBLBSL established with the goal to assist the landless, marginalized, and back-warded people in order to improve their livelihood conditions. There are five members on the board of directors including the chairman, the director, and the independent director.
Jeevan Laghubitta has twelve members management team including CEO, Deputy CEO, Senior Manager, manager, senior officer, officer, and manager-B. JBLBSL formed a capital structure with 1 billion authorized capital and 608.4 million paid-up capital. Likewise, they have 6 organizational investors carrying 43.4% and 66 individual investors with 24.10%.
According to the unaudited report of JBLBSL on 31-12-2077, the company’s financial indicators are as follows:
| S.N. | Heading | Performance |
| 1 | Reserve and Surplus: | Rs 1,183,910,630 |
| 2 | Deposits: | Rs 7,772,787,990 |
| 3 | Borrowings: | Rs 10,175,588,890 |
| 4 | Net profit: | Rs 563,939,790 |
| 5 | CD Ratio: | Rs 258.31% |
| 6 | Earning Per Share: | Rs 104.97 |
| 7 | Net worth per share: | Rs 305.27 |
All the financial indicators of Jeevan Laghubitta are strong. So, after listing IPO in the secondary market the price will be so high.
Jeevan Laghubitta Bittiya Sanstha IPO Details
Jeevan Laghubitta is going to issue the IPO. They are going to issue 19,77,300 shares with a face value of Rs 100. So, they are issuing the share of Rs 197,730,000 among them 0.5% to the employees and 5% to the mutual funds. The IPO details are as follows:
| Total Issued capital: | Rs 60,84,00,000 |
| 32.5% of Issued Capital: | Rs 19,77,30,000 (The number of shares going to issue by JBLBSL) |
| Number of shares going to issue: | 19,77,300 shares |
| Shares to JBLBSL’s Employee(0.5%): | 30,420 Shares |
| Shares to mutual Funds (5%): | 98,865 shares |
| Number of shares to general public: | 18,48,015 shares |
| Price per Share (Face Value): | Rs 100 |
| Share form Opening date: | 11th Ashad 2078 (B.S) |
| Early closing date: | 15th Ashad 2078 (B.S) |
| Late closing Date: | 25th Ashad 2078 (B.S) |
| ICRA rating: | BBB- |
| Number of Units should apply: | 10 |
So, last time when Mahila Laghubitta listed in NEPSE they made history to make the positive circuit. MLBSL started with Rs 300 and reached Rs 5200 within a month. So, the investor who invest Rs 1000 they get Rs 52000 within a month. Additionally, JBLBSL’s financial statistics are stronger than MLBSL so we can assume that the investor who invests in the IPO of JBLBSL will make a very handsome profit.
How to apply?
To apply for IPO you should have DEMAT, bank account, and Customer Reference Number (CRN). Firstly, you can apply by visiting the bank. You have to fill the form of Application Supported by Blocked Amount (ASBA) then submit it at the bank. The bank will apply for IPO for you.
There is a certain charge to apply for the IPO as per bank rules. Secondly, you can apply through the Mero Share application. Nowadays, more than 90% of people are applying for IPO from the Mero Share application because it’s easy and you can operate this from your mobile or laptop.
So, I recommend you apply through Mero Share. If you do not have a Mero-Share please contact any bank they will open the mero share account and provide you login details.