Thursday, January 7, 2021

NIFRA's IPO issue buzz (Finance - Share Analysis)

NIFRA's IPO

NIFRA is the only infrastructure bank in Nepal which's quite nascent to the banking fraternity.

It is on its way to release IPO on,

IPO's release date: 2077/10/02

IPO's closure date: 2077/10/06 (after banking hour)

In case the IPO is not issued wholly then IPO's closure date would be on 2077/10/16.

NIFRA is going to release 80 million shares as for the ordinary shares.

The O/S shares allotment would be in following manner:

▪ 160,000 shares for employees under NIFRA.

▪ 4000000 shares for Joint Investment Trust.

▪ 75840000 as an ordinary shares to be issued.

☆ About NIFRA

Authorized Capital: Nrs. 40 Arab ( each share having FV of Rs. 100).

Issued Capital: Nrs. 20 Arab. Out of 20 Arab of 20 crore shares 12 crore shares have been alloted to institutional shareholders and the remaining 8 crore shares are leftover and to be issued and paid fully to ordinary shareholders.

□ Fundamental Analysis - brief (Why to invest ?)

Per share net worth - on FY 2077/78 it was Rs. 117.69 which was 113.62 in the FY 2076/77.

Earning Per Share - 5.58 (FY 2077/78) and projected to increase to 7.67 on FY 2078/79.

The bonus share of 8% is projected as the company's share capital is projected to increase by 8% in the FY 2078/79 and so on (contingencies applied). 

□ Technical Analysis - This would be done in detail in upcoming blogs with clear explaination in reference to more than 120+ indicators.

■ Where NIFRA will invest?

- Nrs 4 Arab 32 Crore on Loan and Borrowings.

- Nrs 3 Arab 68 Crore on thr other investments.

● Ratings

ICRA Nepal has granted a "BBB" rating to this IPO which means, this is less risky and is fruitful in terms of investment criteria.

● Application

One can minimum apply 10 shares (FV = Rs.100)

Maximum cut off 2 crore shares, but as we all know if one applies for shares more than Nrs. 500000 then one must submit the PAN details.

Hence, this is just a brief information.

Thank you.

Aditya Raz Pokhrel.

MBA, MA Economics, MPA. 



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