Nepal Seva Laghubitta's IPO oversubscribed by over 82 times

The IPO of Nepal Seva Laghubitta Bittiya Sanstha Limited (SEVA) has been oversubscribed by a whopping 82 times. Over 2.08 lakh investors applied for the IPO in which only 16,740 general public applicants will be allotted 10 kitta shares each.

The microfinance company had set aside 2% or 3,600 unit shares for its employees and 5% or 9,000 unit shares for the existing mutual fund companies. The company has floated 1,67,400 units shares to general public. However, the applications were received for 1,37,56,990 units from 2,08,131 applicants. Of the total applications received, 84,445 applicants had applied via Meroshare.

NMB Capital Limited is the issue manager for IPO.

Nepal Seva Laghubitta Bittiya Sanstha has commenced its financial transaction from Mangsir 08, 2071. The main vision of the microfinance company is poverty alleviation of rural community through economic development enhancing standard of living of people. The microfinance company has been rendering services to 12VDC’s of Sindhupalchowk district providing microfinancial services to around 50 thousand people. The company has plans to extend its branches at Rasuwa and Nuwakot district.

Nepal Seva Laghubitta Bittiya Sanstha has paid-up capital of Rs 4.20 crore, and after issuance of IPO shares its capital will reach Rs 6 crore.

It had posted net profit of Rs 39.94 lakh in the FY 2073/74.