Muktinath Agricultural Company’s IPO from Today, How is the Company?

Kathmandu : Muktinath Agricultural Company Limited has opened the IPO sale for the general public from today.

The company has issued 11 lakh 48 thousand shares. The shares are being issued at a face value of Rs.100 per share.

Investors can apply for a minimum of 10 shares to a maximum of 1,000 shares. Shares can be filled through C-Aswa approved banks and financial institutions and my shares.

Applications can be submitted till November 12. The company said that if all the shares are not sold during that period the application can be made till 22nd of November.

The company got permission to issue shares worth Rs. 140 crores. Out of which, the company has already issued and distributed 140,000 shares to Nepalese working abroad in the first phase.

The company has allocated 42,000 shares to employees and 70,000 shares to collective investment funds.

Rating agency Icra Nepal has given this IPO a ‘double B minus rating’. This indicates that there is a moderate level of risk to the company’s ability to meet its obligations. NIMBS Capital is the sale manager for this IPO.

Muktinath is an agricultural company. The company is producing essential quality products for increasing the production and productivity of farmers and agricultural professionals.

The company intends to use the capital obtained from the IPO in the development and research of industry structure. It will be used to make a test lab store.

After issuing the shares the company’s paid-up capital will reach Rs.700 crore. Muktinath Bikas Bank owns the largest share of 27.8 percent in the company. Its main shareholders are Bharatraj Dhakal, Tulsi Ram Dhakal, Narayan Kumar Shrestha, Sitaram Kafle, Bhagwati Lamichhane and Gautam Prasad Khanal.

Established in 2018, this company is Muktinath Company in an effort to become the largest company in this region. It is currently producing various items including tools needed in the agricultural sector.

In 2022, the company earned 192 million. However, the income was not achieved according to the target for that year. The company had to write up after failing to provide chemical fertilizers to the government on time. This is the reason why the income was not achieved as per the target.

In 2023/24 the company had an income of 40 million 19 million. According to the details published by the company in the invitation letter, in 2020/21, the company made a profit of 1 crore 72 million rupees. In the previous year 2019/20, the company had a loss of 100.27 million. The period of receiving cash by the company was also 433 days in the previous year 2018/19. There was some improvement in it.

In 2021/22, the company’s net worth per share is 90 rupees 32 paise. Earning per year is Rs.3.48 paise.