Although the company has not fixed the date for the launch of the IPO, a reliable source told Republica the shares would be floated sometime next month.[break]
The company, which provides wholesale credit to more than 90 microfinance institutions, is currently backed by more than a dozen institutional investors including Nepal Rastra Bank, 13 commercial banks, five regional rural development banks, the Deposit and Credit Guarantee Corporation and Nirdhan Utthan Bank.
On Thursday, it is adding one more institutional partner to its stable - the International Finance Corporation (IFC) of the World Bank.
The IFC is purchasing 300,000 units of the company´s share at a face value of Rs 100 each.
"RMDC is also planning to raise another Rs 14 million by selling 140,000 units of our shares to various institutional investors," the source said, expressing hope that the measures taken to replenish the capital would help the company in expanding its business.
The company, with a capital of Rs 320 million, provided credit of Rs 5.81 billion to 88 microfinance institutions located in 67 districts till last fiscal year ending mid-July, according to information posted on the company´s website.
This amount has benefited 1.2 million poor and deprived families. So far, 100 percent of the loans issued by the company have been repaid, meaning the company has no non-performing loans.
The company earned a net profit of Rs 124.82 million in the last fiscal year.
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