The authorized capital of the bank is Rs.100,000,000. The issued capital is Rs.50,000,000. The paid up capital is Rs.30,000,000, after issuing shares worth Rs.20,000,000 to the general public the paid up capital of the bank will be raised to Rs.50,000,000. The promoters of the bank invested Rs.30,000,000 (60%) while the ordinary public along with the employees of the bank will invest Rs.20,000,000 (40%). The bank is promoted by the individuals related to banking, teaching, co-operatives and other businesses.
The financials of the bank as of 4th quarter 2069/70 (unaudited) are as follows:
Paid up Capital:Rs.30,000,000
Reserve and Surplus:Rs.5,678,000
Net Profit:Rs.4,717,000
Earning Per Share:Rs.15.72
Net Worth Per Share:Rs.117.45
The bank has no plans to increase its paid up capital till the fiscal year 2072/73 so the shareholders can expect cash dividend till then but we can expect the bank to gradually raise its paid up capital by offering bonus shares in the subsequent years.The bank has been in operation since 2067 B.S. and has a total of 8 branches as of now and since it is a micro credit development bank it has to make tremendous progress in order to expand its services. Considering the investors attraction towards the micro finance companies we can expect this IPO to be over subscribed by many times but still I see it as a good investment prospect as the bank will in position to offer dividends in the double digits in the coming years.
-FrEaK_MoNeY
