Green Dev. Bank IPO allotment concludes: up to Rs 90,000 lottery; above that flat 1.1% to all Investors

Green Development Bank Limited has concluded its IPO allotment today at the premises of issue manager NIBL Capital Markets Limited located at Lazimpat, Kathmandu at 8:00 AM. Allotment for investors who had applied from Rs 5000 or 50 units to Rs 90,000 or 900 units shares was decided through lottery and investors who had applied for Rs 91,000 or  910 units to Rs 10,00,000 or  10,000 units  who applied were allotted 1.1 % on pro-rata basis. Green Development Bank had floated its Initial Public Offering (IPO) of 4, 50,000 unit shares worth Rs 4.50 crore from Jestha 23, 2072 till Jestha 26, 2073. The IPO was oversubscribed by 99.61 times till last day. NIBL Capital Market Limited was the issue manager for the IPO. Of the total 4,18,500 unit shares set aside for general public, 40% or 167,400 units shares, were put aside for retail investors and 60% or 251,100 shares, under “other investor” category. Retail investors applied for a total of 17,172,620 unit shares and those in the others category demanded 22,798,030 units shares. Here, the total demand from the retails investors group exceeds more that 40% of total demand. When the demand from retail investors group exceed more than 40% of total demand then as per SEBON allotment directives, allotment is done as per flat basis. The shares set aside for retail investors were oversubscribed by 102.58 times and those set aside under other category were oversubscribed by 90.79times. Of the total 101,231 applicants’ only 27,506 investors got the shares including 6 mutual fund and staffs. There were only 75 invalid applicants. The bank plans to raise Rs 4.50 crore through the offer. After the IPO, the paid up will reach Rs 10 crore from the current Rs 5.50 crore. The bank has authorized capital of Rs 50 crore. After the IPO, the promoter-public ratio of the company will be 55 % to 45%. Green Development Bank has earned a net profit of Rs. Rs 1.44 lakh in the second quarter of the fiscal year 2072/73.Its EPS remains at Rs 0.23 and net worth per share at Rs 82.97.