January 19, 2021 | Investopaper
Nepal Infrastructure Bank Limited (NIFRA) is currently issuing an Initial Public Offering (IPO) from Magh 2, 2077 BS. The IPO will close on Magh 6, 2077 BS due to oversubscription of shares. If the issue had remained undersubscribed until that period, it would extend to Magh 16, 2077 BS.
The company is selling 8 crores units worth Rs 8 Arba in the IPO. This is the biggest IPO so far in the Nepalese Share market. Securities Board Of Nepal (SEBON) has provided the approval for IPO issuance on Poush 10, 2077 BS. NIFRA had submitted the application to the Securities Board on Mangsir 8, 2077 BS.
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Out of the total public issue size, the employees of the company will receive 0.20 percent or 1.60 lakh shares. Likewise, 5 percent or 40 lakh shares is reserved for the mutual fund schemes. Hence, the general pubic can apply for the remaining 7.58 crore shares.
The bank has already appointed Citizen Investment Trust (CIT) as the issue manager for the IPO.
ICRA Ratings Nepal has provided ICRANP [IR BBB] ratings to the issue. This indicates average fundamentals for the company, moderate credit risk, moderate safety in the timely payment of financial obligations.
After the issue of the public offering, the general public will have 40 percent ownership in the company. Likewise, the promoters will possess the remaining 60 percent share.
Until Ashad end 2077, Nepal Infrastructure Bank has a paid-up capital of Rs 12 Arba. After the issue of IPO (if fully subscribed), the capital will rise to Rs 20 Arba. In the fiscal year 2076/77, NIFRA earned a net profit of Rs 84.71 crores. [Based on the unaudited report of the FY 2076/77].
About Nepal Infrastructure Bank (NIFRA)
Nepal Infrastructure Bank Limited (NIFRA) is a National Level Infrastructure Development Bank. Its main objective is to accelerate the development of infrastructure of the nation by investing in sustainable infrastructure and other productive sectors.
The Bank obtained the operating license from Nepal Rastra Bank on February 11, 2019 (Magh 28, 2075). It started its commercial operation on March 6, 2019 (Falgun 22, 2075).
The major promoters of the Nepal Infrastructure Bank Limited (NIFRA) include Banks and Financial Institutions (BFIs), Life and Non-life Insurance companies and other private sector leading entities, and a team of entrepreneurs in joint participation with the Government of Nepal (GoN).
Mr. Anuj Agrawal is the chairman of the bank. Likewise, Mr. Anil Gyawali leads NIFRA as its Chief Executive Officer (CEO).