2015

IPO Analysis of Kisan Micro

Finance Bittiya Sanstha Ltd.

Sharesansar.com
6/12/2015

Overview

Kisan Micro Finance Bittiya Sanstha Ltd.

Issued Units
Per Unit Cost
IPO size
Shares allotted for Staff
Size allotted for Staff
Shares allotted for Mutual Fund
Size allotted for Mutual Fund
Shares allotted for General Public
Size allotted for General Public
Opening Date
Closing Date (Minimum)
Closing Date (Maximum)
Minimum Investment Units
Minimum Investment Amount
Maximum Investment Units
Maximum Investment Amount
ICRA Nepal Rating
Issue Manager

80 thousand units
NPR 100
NPR 8 million
2400 units
NPR 0.24 million
4000 units
NPR 0.4 million
73600 units
NPR 7.36 million
3/1/2072
3/4/2072
3/15/2072
50 units
NPR 5000
1000 units
NPR 100000
[ICRANP] IPO Grade 4
Civil Capital Market Ltd.

Note: IPO applied for more than 50 units should be divisible by 10 and when applied for more than or
equal to Rs.50,000 the payment should be made through account payee cheque.

Introduction of Kisan Micro Finance Bittiya Sanstha Ltd.

Company Profile
Kisan Micro Finance Bittiya Sanstha Ltd. was established in 2069/02/19 under the Company Act, 2063
and has been carrying out its activities as per Nepal Rastra Bank Act 2058 and Bank and Financial
Institution Act, 2063. It began its operations from 2069/10/03 as a class D financial institution. It has its
corporate headquarter in Kamalbazar-8, of Achham district.
Areas of Operation
Kisan Micro Finance Bittiya Sanstha Ltd. is allowed by the NRB to operate in 10 districts. These districts
are: Kalikot, Bajura, Bajhang, Doti, Achham, Kailali, Mugu, Humla, Baitadi and Darchula. Currently the
company has branches in 9 districts namely Achham, Kailali, Bajura, Doti, Kalikot, Darchula, Baitadi,
Bajhang and Mugu. The company has a total of 13 operational branches.

Areas of Operation

Number of Authorized Districts for Operation

Number of Districts in Operation
Number of Branches

10
9
13

Capital Structure
The bank has authorized and issued capital of Rs.2,00,00,000. The companys promoters have already
pledged Rs.1,20,00,000 and the additional amount is to be collected through the IPO.

Capital Structure
Authorized Capital
Issued Capital
Paid up Capital

Rs. 20 million
Rs. 20 million
Rs. 20 million

Public Vs. Promoter Share

Public
Promoters

Rs. 8 million
Rs. 12 million

Domestic Vs. Foreign Ownership

Domestic Ownership
Foreign Ownership

Rs. 20 million
Rs. 0 million

Public Vs. Promoter Share

Public

Promoters

40%

60%

Domestic Vs. Foreign ownership

Domestic Ownership

Foreign Ownership

0%

100%

*the capital structure details have been calculated as would be after the IPO.

Board of Directors
The company has 5 members in its Board.
1. Mr. Netra Prasad Joshi, Chairman
Academic Qualifications: M.A.
Work Experience: 6 years experience as director of Kisan Sahakari Sanstha and 3 years
experience as Director of Seti Finance.
2. Mr. Mrigendra Bahadur Bista, Director
Academic Qualifications: M.A.
Work Experience: 10 years experience as chairperson of Bidhya Travels.
3. Mrs. Lalita Kumari Shahi, Director
Academic Qualifications: B.A.
Work Experience: 5 years experience as chairperson of Mahila Sahakari.
4. Mr. Chakrapani Chalisa, Director
Academic Qualifications: B.Com
Work Experience: 12 years experience as director of New Light Higher Sec. School.
5. Mr. Prawin Paudyal, Director
Academic Qualifications: B.A.
Work Experience: 8 years experience as managing director of Panchapuri Hardware.

BOD's shareholding in the company

Mr. Netra Prasad Joshi
Mr. Mrigendra Bahadur Bista
Mrs. Lalita Kumari Shah
Mr. Chakrapani Sapkota
Mr. Prabin Paudyal

12000 units
10000 units
5000 units
5000 units
5000 units

CEOs Profile
Mr. Indra Kumar Shah, CEO

The Companys CEO is Mr. Indra Kumar Shah. He holds a Bachelors Degree in Commerce and has a
Masters Degree in Sociology. He has worked as an officer in Agriculture Development Bank Ltd. for 3
years. He was also the founding chairman and the branch manager of Kisan Co-operative for 10 years.
He has also had experience as a manager in Seti Finance for 6 years.

Financial Highlights
Share Capital and Reserve & Surplus:

2012-13
Share Capital
Reserve & Surplus
Total Equity
Total Assets

12000
-1129
10871
42026

Actual (000)
Change 2013-14
%
0.00%
12000
584
15.76%
12584
196.77% 124721

Q2 2014

2014-15

12000
3133
15133
175038

20000
5951
25951
239622

Projected (000)
2015-16
2016-17
20000
4078
24078
328384

Share Capital And Reserves

35000
30000

Thousands

25000
20000
15000

Reserve & Surplus

10000

Share capital

5000
0
-5000

2012-13

2013-14

Q2 2014

2014-15

2015-16

2016-17

Total Assets
450
400
350
Millions

300
250
200
150
100
50
0

2012-13

2013-14

Q2 2014

2014-15

2015-16

2016-17

26000
5782
25782
414748

Operating and Net Profits:

2012-13
Operating Profit
Net Profits

-1544
-1129

Actual (000)
Change 2013-14
%
2604
1714

Q2 2014

2014-15

2566
2566

8433
5367

Projected (000)
2015-16
2016-17
12772
8127

Operaing and Net Profits

18000
16000
14000

Thousands

12000
10000
8000

Operating Profit

6000

Net Profit

4000
2000
0
-2000
-4000

2012-13

2013-14

Q2 2014

2014-15

2015-16

2016-17

15248
9703

Deposits and Investments:

Actual (000)
Change 2013-14
%
15.76%
17923
91910
193.87% 96060

2012-13
Deposit Liability
Loans Payable
Investments
Loans and
Advances

3027
28038
32688

Q2 2014

2014-15

30985
122021
145974

30000
180000
199471

Projected (000)
2015-16
2016-17
40000
250000
269301

50000
320000
369055

Loans Payable
350
300

Millions

250
200
150
100
50
0

2012-13

2013-14

Q2 2014

2014-15

2015-16

2016-17

Deposits, Loans Payable and Loans and Advances

400
350

Millions

300
250

Deposit Liability

200

Loans Payable

150

Loans and Advances

100
50
0

2012-13

2013-14

Q2 2014

2014-15

2015-16

2016-17

2012-13
Interest Income
Interest Expenses
Net Interest
Income

1414
482
932

Actual (000)
Change 2013-14
%
751.91% 12046
857.88% 4617
697.10% 7429

Q2 2014

2014-15

15464
8451
7013

28500
10500
18000

Projected (000)
2015-16
2016-17
36000
12500
23500

42500
15000
27500

Interest Income Vs. Interest Expenses

45
40
35
Millions

30
25

Interest Income

20

Interest Expenses

15
10
5
0

2012-13

2013-14

2012-13
Earning Per Share
Book Net Worth
per Share
ROE
ROA

Q2 2014

-9.41
87.23

Change
%
17.32%

-10.39%
-2.69%

2014-15

Actual
2013-14

2015-16

2016-17

2014-15

Projected
2015-16

2016-17

14.28
102.34

Q2 2014
(annualized)
25.66
126.11

26.84
128.75

31.26
119.89

80.86
122.24

13.62%
1.37%

20.68%
2.24%

33.75%
2.47%

37.63%
2.34%

Earning Per Share

90
80
70
60

2012-13

Rs.

50

2013-14

40

2014-15

30

2015-16

20

2016-17

10
0
-10

2012-13

2013-14

2014-15

2015-16

2016-17

-20

ROE and ROA

50.00%
40.00%
30.00%
20.00%

ROE
ROA

10.00%
0.00%
-10.00%
-20.00%

2012-13

2013-14

2014-15

2015-16

2016-17