Mero Microfinance to issue 612 thousand units of share

Kathmandu October 30- Mero Microfinance has boosted its paid up capital to 138.8 million and reserve to Rs. 44 million. Finance has succeeded to increase its deposits by 545.44% to Rs. 101.9 million. Microfinance has invested Rs. 1 billion 177.8 million in loans and its net interest income is Rs. 93.4 million. Mero Microfinance is going to offer primary shares to general public.

According to Microfinance, it has already sent proposals for approval to Nepal Securities Board. Share offering may take place in December. Finance is offering 612 thousands primary share worth of Rs. 61.2 million.

Right now, Microfinance has paid up capital of Rs. 138.8 million which will increase to Rs. 200 million after the issuance of primary share. Microfinance has appointed Global IME Capital Limited as its issue manager. Only Credit rating Company in Nepal, ICRRA Nepal has given 4 rating to microfinance's primary share.

Established in 30 Ashad, 2063, microfinance has promoter's share of 8 commercial banks (Global IME Bank, Citizens International Bank Ltd, NIC Asia Bank Ltd, Grand Bank Ltd, Nepal, Siddhartha bank Ltd, NMB Bank Ltd, Prime Commercial Bank Ltd, Janata Bank Ltd) and 2 Development banks (H& B Development Bank Ltd and NDEP Development Bank).

Micro finance had 40 million 12 thousand net profit in fourth quarter which was Rs. 2.893 million in the same period of Last FY. Reserve of the microfinance has 44 million in balance and deposit collection has increased by 545.44% to Rs. 101.9 million.

Loan investment of Microfinance is Rs. 1 billion 171.8 million. It has earned net interest income of Rs. 93.4 million and operating profit of Rs. 63.9 million is earned during this period. Microfinance has kept Rs. 8.9 million as loss provision. Microfinance has succeeded to recover 83 thousand bad loan of last year. EPS of microfinance is Rs. 29.71. Bad debt is null and Risky assets amounts to 15.12%.