Sana Kisan Bikas Bank, RMDC to go public

Sana Kisan Bikas Bank and Rural Microfinance Development Centre (RMDC) are floating shares to the public next week.

Sana Kisan is floating 600,000-unit of shares at a face value of Rs 100 per unit from July 7 to July 10, whereas RMDC is floating its initial public offering (IPO) at Rs 180 per unit, adding Rs 80 premium from July 11 to July 15.

The class D financial institution, Sana Kisan Bikas Bank – Small farmers Development Bank – is floating a total of Rs 60 million worth IPO.
The apex microfinance bank started in July 2001 to provide wholesale credit along with the technical support services, mainly to the Small Farmers Cooperatives Ltd (SFCLs), is the first financial institute to float shares after the credit rating. The IPO is managed by Elite Capital.
Likewise, the wholesale micro credit lender RMDC – the second financial institution to be rated before going to public – has offered 1.56 million units for Rs 180 per unit — at face value of Rs 100 and Rs 80 premium.
The general public can subscribe for 1.45 million unit shares at the premium rate as RMDC has set aside 31,200 units for its employees and 78,000 units for mutual funds.
The IPO of RMDC – managed by Ace Capital –is the third company after Chilime Hydropower and Nepal Telecom and the first financial institution to issue primary shares at a premium price.
RMDC has been allowed by Securities Board of Nepal (Sebon) and Nepal Rastra Bank (NRB) to issue the shares at a premium rate.
Icra Nepal — the credit rating agency — has given an ‘ICRANP IPO Grade 3+’ rating to RMDC and Sana Kisan Bikas Bank's public offering, which means an average ranking.
According to Icra Nepal’s grading system, IPO Grade 1 indicates strong fundamentals and Grade 5 indicates poor fundamentals.
Both the Sana Kisan Bikas Bank and RMDC are expected to give nice return to its shareholders.