"10% Prabhu Bank Debenture 2084" Undersubscribed by the Public and Oversubscribed by Institutions

Prabhu Bank Limited has closed the issue of "10% Prabhu Bank Debenture 2084" on 23rd Shrawan, 2077. This debenture issue was opened since Shrawan 19.

The bank had issued a total of 20 Lakh units of debentures at par value of Rs.1000 per unit. The total value of the issue is Rs.2 Arba and it will be providing a 10% interest rate. The debenture will mature in 8 years i.e. in 2084.

Out of the total issue, 8 Lakh units (40% of the issue) were issued to the general public while the remaining 12 Lakh units (60% of the issue) were issued to the different institutions through private placement.

Nabil Investment Banking, which was appointed as the issue manager, informed Sharesansar that 2,318 general investors (public) have applied for 7,30,925 units. Meanwhile, 44 applicants have been received from institutions through private placement for a total of 54,08,200 units. In total this issue was oversubscribed by 3.07 times.

This shows us that while the issue received a significantly large number of applications from the institutions, the general public applied for less quantity than the allotted quota.