Muktinath Krishi Company’s IPO is opened from today 2023-11-24 and will be closed applications on 2023-11-28.
Muktinath Krishi Company Limited, a Nepalese agricultural company, has applied with the Securities Board of Nepal (SEBON) for an Initial Public Offering (IPO). With the approval of SEBON, the company plans to issue 400,000 shares at a par value of Rs. 100, raising a total of Rs. 4 crores. The company plans to offer the general public 10% of its shares.
The company has received investments from Muktinath Bikas Bank and over 863 successful Nepalese businesses. With its IPO, Muktinath Krishi Company Limited hopes to expand its operations and reach more farmers in the country. The funds from the IPO will be used for working capital, purchasing equipment, and expanding its distribution network.
Mega Capital Markets Limited will manage the IPO for MKCL.
The agricultural sector is vital to Nepal’s economy, contributing over a third of the country’s Gross Domestic Product (GDP). However, the sector faces several challenges, including a lack of infrastructure, technology, and financing. Muktinath Krishi Company Limited’s focus on various aspects of the agricultural value chain and its IPO could significantly address these challenges and support the sector’s growth and development.
Our research has found some key points which are mentioned below :
Muktinath Krishi Company Ltd (MKCL) and Its Activities:
- MKCL is linked up with every point of the agricultural value chain in Nepal, from seeds to the kitchen table.
- The company has a strong Technical Department that reviews and recommends products such as seeds, fertilizers, and pesticides. It provides on-site and on-call problem diagnosis and solutions to farmers. It carries out advanced training on various aspects of agriculture.
- MKCL conducts trials of vegetable seeds, pesticides, and fertilizers in its two research and development farms at Syangja and Lalitpur. Agri-graduates and breeders supervise these trials.
- MKCL provides business development services to farmers and agriculture entrepreneurs in various stages, from investigation and feasibility to growth and maturity. These services include marketing, technical, financial, and capitalization services.
- The company is rigorously looking for new business ventures, branding, co-branding, authorized dealership, and technology transfer with renowned international agri-companies to expand its operations in Nepal.
- MKCL is associated with Muktinath Bikas Bank Limited (MNBBL), established in 2007. MNBBL provides banking services, including microfinance services, to more than 150,000 members and their households with access to finance, financial literacy, business literacy, and insurance.
- Most MNBBL’s members reside in rural areas, and agriculture is their major occupation. The bank promotes its members for the commercialization of agriculture.
Muktinath Krishi Company Limited’s upcoming IPO could be a significant opportunity for investors interested in the agricultural sector in Nepal. The company’s focus on various aspects of the agricultural value chain, coupled with its partnerships and investments, positions it well for future growth and success. With Mega Capital Markets Limited managing the IPO, investors can have confidence in the offering’s management and execution. The success of the IPO could have a significant impact on Nepal’s agricultural sector and the country’s economy as a whole.