IPO Allotment of Aviyan Laghubitta Bittiya Sanstha Concludes: 91,375 Applicants Celebrate; 18,87,219 Applicants Return Empty-Handed

The IPO allotment of Aviyan Laghubitta Bittiya Sanstha Limited (AVI) is concluded today at the premises of Muktinath Capital Limited, Narayanchaur, Naxal, Kathmandu.

Aviyan Laghubitta Bittiya Sanstha Limited (AVI) had issued 9,75,000 units worth Rs 9.75 crore as Initial Public Offering to the general public (Shrawan 18- 22, 2079). 

Out of the offered 9,75,000 units; 0.5% of the total capital i.e. 12,500 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 48,750 units have been set aside for the mutual funds. The remaining 9,13,750 units are for the general public. This is the 39% shares of the issued capital. The total capital after the IPO will be Rs 25 crore of the company. 

The issue had received applications from 19,78,594 valid applicants who had applied for a total of 21,887,100 units. The issue was oversubscribed by more than 22.47 times. 

As per the allotment module, a total of 91,375 applicants were allotted 10 units each via lottery, and the remaining 18,87,219 applicants were returned with empty hands. 

A total of 12,500 units were allotted to employees and 48,750 units were allotted to mutual funds.

In total 2,376 applicants who applied for 91,375 units were disqualified due to duplicate applications. 

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and Muktinath Capital. 

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP Issuer Rating Double B minus) to Aviyan Laghubitta Bittiya Sanstha Limited (ALBSL). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.

Incorporated in April 2019, the company started its operation in November 2019 as a licenced national level class D microfinance institution. ALBSL is promoted by two commercial banks (Mega Bank and Kumari Bank Limited with holdings of ~16.4% each) and 246 individual promoters. Mr. Laxmishwor Devkota is the Chief Executive Officer of the company. The registered and corporate office of ALBSL is in Panauti-5 Kavre, Nepal.