Ghodighoda Laghubitta IPO closing from today; See the company’s fundamentals

July 9, 2019 | Investopaper

Ghodighoda Laghubitta Bittiya Sanstha Ltd. is closing its IPO from today (Ashad 24, 2076). Due to the oversubscription of shares, the issue will remain open until the close of banking hours. If the issue had remained undersubscribed until today, it would extend to Shrawan 19, 2076.

The IPO issue was open from Ashad 20, 2076.

The company will issue 1,32,600 shares to the general public through the Initial Public Offering (IPO). Through the sale of IPO shares, the company is trying to raise Rs. 1.33 crores as the capital.

Out of 1,32,600 IPO shares, 1,380 units are reserved for the employees of the company. Likewise, mutual funds will apply for the 6,630 units of share. Similarly, the general public will participate in the remaining 1,24,590 shares.

Interested investors can apply for a minimum of 10 and a maximum of 1,000 shares. And the par value of the IPO share is Rs. 100.

Prabhu Capital is the issue manager for the IPO of Ghodighoda Laghubitta.

The company received approval from Sebon to issue IPO on Ashad 6, 2076.

Financial Position of Ghodighoda Laghubitta

Mr. Kunna Narayan Chaudhary is the current CEO of the company. The company is operating with 31 staffs, including the Chief Executive Officer (CEO). Out of total employees, 14 are permanent while the remaining 17 are on contract or intern.

Branches:

Currently, the company is operating through its 6 branches located in Kailali and Kanchanpur. The head office remains at Belauri Municipality-4, Kanchanpur.

Shareholding Structure after the issue of IPO:

After the issue of the IPO, the general public will possess 48 percent of the company. Out of the total capital of Rs. 2.76 crores, the general public will hold shares worth Rs. 1.33 crores. Likewise, the promoters will hold 52 percent of the company.

Financial Indicators of Ghodighoda Laghubitta:

In the fiscal year 2074/75, the company had Earnings Per Share (EPS) of Rs. 0.59. Likewise, net-worth per share stood at Rs. 77.01. The accumulated loss until 2074/75 was Rs. 25.49 lakhs. The projected financial indicators of the company are also shown in the table below:

Future Projections:

After the issue of the IPO, the paid-up capital will rise to Rs. 2.76 crores. The company expects to increase its capital to Rs. 4.64 crores in a period of 2 years. The future projections in 3 years of Ghodighoda Laghubitta are shown in the table below:

(Investments are subject to market risks and investors are advised to do a personal homework before taking any investment decision. This material is just a guideline for the investors to do further investigations)