ABHI IPO: The Gold Behind the Glitter

Mettis Global’s review of ABHI Microfinance Bank’s prospectus says the lender’s turnaround relies heavily on gold-backed loans, which account for 88.7% of its advances and 90.8% of loan income. The IPO offers 132 million new shares, with a price range of Rs15 to Rs22.5; at the lower end, the bank would raise Rs1.98 billion. Retail subscriptions are scheduled for 12-13 November.

The analysis notes that the bank earned Rs1.5 billion in the first half of 2026, but its June capital adequacy ratio remained negative at 6.26%, against an SBP minimum of 15%. The prospectus also depends on regulatory relief, continued gold lending and projected profits, while 200 million sponsor shares are due to be issued at Rs10 each by 31 December. TPL Corp is identified as a sponsor, and TPL Insurance as a depositor; the review says dividends are not expected for two to three years.