Abhishek kushwaha

The days of "double your money in 21 days" are gone. Now, an opportunity is emerging where your investment could grow 30 times in a month! From Chaitra 21, Wean Nepal Laghubitta Bittiya Sanstha Limited is opening its Follow-on Public Offering (FPO). If you manage to secure shares from this FPO, your investment could multiply significantly. This is not a scam—it’s a reality. If you are unaware of this FPO, welcome to today’s review article, where we will analyze it in depth. We will cover the details of the FPO, its opening date, expected opening price, and the financial standing of the company. Let's dive into the FPO details first.

FPO Details:

Wean Nepal Laghubitta Bittiya Sanstha Limited has an issued capital of NPR 84,340,550. Out of this, NPR 5,125,250 worth of shares, at a face value of NPR 100 per share, will be issued via the FPO, totaling 51,252.5 shares. As per the Banking and Financial Institutions Act 2073 and Nepal Rastra Bank (NRB) regulations, every financial institution must allocate at least 30% of its total capital to the public. Following this mandate, Wean Nepal is issuing this FPO. The application period for this FPO is from Chaitra 21 to Chaitra 26. Care Rating Nepal has provided this company with a CARE NP Single B issuer rating, which indicates a high financial risk. Investors can apply for a minimum of 10 shares and a maximum of 1,000 shares. The company has appointed Nepal SBI Merchant Banking as its issue manager.

Company Profile:

Wean Nepal Laghubitta Bittiya Sanstha Limited operates in the microfinance sector. It was registered as a public limited company on Poush 16, 2070, and obtained operational approval from Nepal Rastra Bank on Poush 8, 2071. Since then, it has been providing financial services under regulatory guidelines. The company merged with Nepal Sewa Laghubitta Sanstha on Bhadra 15, 2078, and has been operating as an integrated entity since Mangsir 15, 2078. Currently, it operates through 21 branch offices across 8 districts. The board of directors of the company consists of Chairman Madan Gopal Shrestha, along with directors Kamal Raj Joshi, Sukuman Dangol, Rama Devi Shrestha, Anjila Neupane, and Raju KC.

Financial Details:

Wean Nepal Laghubitta’s financial standing reflects its struggles in recent years. The company’s paid-up capital remained at NPR 792.1 million for the financial years 2079/80 and 2080/81. However, post-FPO, the paid-up capital is projected to increase to NPR 843.4 million in the financial year 2081/82. The company’s net worth per share has been on a decline, with NPR 108.44 in 2078/79, NPR 105.08 in 2079/80, and further decreasing to NPR 91.23 by Poush 2080/81. Future projections suggest an increase to NPR 175.18 by 2083/84. The earnings per share (EPS) also indicate financial instability. EPS was NPR 0.01 in 2078/79, dropping to -4.44 in 2079/80, and further declining to -13.47 in 2080/81. However, future projections estimate a recovery, with EPS reaching NPR 33.78 by 2083/84. The company's retained earnings also show a downward trend, with NPR 10.5 million in 2078/79, dropping to -19.6 million in 2079/80, and further declining to -28.6 million in 2080/81. The company’s debt stood at NPR 541.3 million in 2079/80 and slightly reduced to NPR 521.4 million in 2080/81. Additionally, its non-performing loans (NPL) were reported at 8.67% in 2080/81.

Opening Price & Conclusion:

As of the time of writing, Wean Nepal Laghubitta’s shares are trading at over NPR 3,000 per share in the secondary market. If the FPO gets listed and follows the current market trend, its opening price is likely to be above NPR 3,000. If you are allotted 10 shares through this FPO, your NPR 1,000 investment could turn into NPR 30,000+. Some investors may hesitate due to the company’s weak financials, but it is important to note that low-cap stocks like this can yield substantial returns. Since the number of shares being issued is very limited, applying for 10 shares should be sufficient. This concludes our FPO review. If you have any questions about Wean Nepal Laghubitta’s FPO, feel free to leave a comment !

https://www.youtube.com/watch?si=qrVtROZQtlqa4U_C&v=j-snm9Yqqek&feature=youtu.be