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Major Microfinance Merger Takes Shape as First Microfinance and Mahila Microfinance Sign MOU

First Microfinance and Mahila Microfinance have signed a preliminary agreement to merge, paving the way for a stronger and more geographically diversified microfinance institution.

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Major Microfinance Merger Takes Shape as First Microfinance and Mahila Microfinance Sign MOU

The merger process between First Microfinance Laghubitta Bittiya Sanstha Limited and Mahila Laghubitta Bittiya Sanstha Limited has formally moved forward with the signing of a preliminary Memorandum of Understanding (MOU). The two companies signed the agreement on Shrawan 25 to initiate the process of merging into a single institution. Both companies are listed on the Nepal Stock Exchange (NEPSE). First Microfinance, headquartered in Gyaneshwor, Kathmandu, currently has a paid-up capital of Rs. 1.34 billion, while Mahila Microfinance, based in Banepa, Kavre, has a paid-up capital of Rs. 217.5 million. The proposed merger is expected to strengthen the combined institution’s capital base and expand its operational reach. However, the share swap ratio between the two companies has not yet been finalized and will be determined after the completion of a detailed due diligence and audit process.

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