IPO of RSDC Microfinance from Today

August 22: RSDC Microfinance is issuing 400,000 units of initial public offering (IPO) to general public from today. The face value of per unit share is Rs 100. Interested investors can apply minimum of 50 units of shares and maximum of 4,000 units of shares. The company will close the share issuance early on August 24 and delayed on September 4.

The company has appointed NIBL capital market as its Issue Manager. Interest investors can submit their application in NIBL Capital Market along with RSDC Microfinance, Vibor Capital, Prabhu Capital, branches of various banks including Nepal Investment Bank, Gorkhas Finance, Guheshwori Merchant Banking and Finance, RSCF Finance, Nepal Community Bank, Synergy Finance, Sajha Bikash Bank and Sewa Development Bank. 

According to the company, it has allocated 20,000 units of shares to mutual funds and 8,000 units of shares to employees. After the IPO issuance, the paid-up capital of the company will reach Rs 100 million. Nepal Rastra Bank, earlier, had directed Microfinance companies dealing in retail loan to meet the minimum paid-up capital of Rs 600 million. As per the NRB directive, the company requires to increase its paid-up capital to Rs 600 million. ICRA Nepal has granted grade 4 rating to the IPO indicating the fundamentals of the IPO issuance is below average.