Ekata’s IPO allotted proportionately at 6.53%; up to Rs 14,000 under lottery

Allotment of the Initial Public Offering (IPO) of Ekata Bikas Bank has taken place this morning at the office of NMB Capital, which is the issue manager of the development bank.
 
As per the official, the IPO has been allotted proportionately at 6.5334 percent, and those who had applied between 50 and 140 units of the primary shares were placed under lottery.

The IPO worth Rs 8 crore floated by the development bank on June 4 was oversubscribed by 15.306 percent by the time the issue closed on June 9.

Among the total 8 lakh issued units, 24,000 units had been set aside for the bank staff, another 40,000 for the mutual funds and the remaining units were floated for the general public.

Securities Board of Nepal (SEBON) had granted approval to the IPO issue on May 13.

The development bank is in operation from May 15, 2011, since then it has always generated profits. The bank has collected Rs 1 arba 13 crore worth deposits and granted a total of Rs 95 crore loans and advances. The customer base of the bank has reached to 16 thousands.

Currently development bank headquartered in Butwal has two branches and nine service centers. The scope of operation is spread over three districts: Dang, Rupundehi and Kapilvastu.

As per the third quarter unaudited financial report of FY 2070/71, the bank has earned Rs 1.24 crore as compared to Rs 0.65 crore of the corresponding last fiscal year.

It may be noted that ICRA Nepal, the only credit rating agency in the country, had assigned an IPO Grade 4, indicating below-average fundamentals to the IPO.