IPO allotment of Nepal Infrastructure Bank Limited concludes; valid 14,75,008 applicants get up to 50 units and lucky 4,92,072 applicants get 10 units extra

The IPO allotment of Nepal Infrastructure Bank Limited has concluded today at the premises of the issue manager - NIBL Ace Capital Limited.

Nepal Infrastructure Bank Limited had issued 8,00,00,000 units worth Rs 8 Arba as Initial Public Offering to the general public from Magh 2-6, 2077. 

Out of the offered 8,00,00,000 units; 0.20% of the total offered shares to the general public i.e. 1,60,000 units were set aside for the employees of the company and 5% for mutual funds. The remaining 7,58,40,000 units were for the general public.

The issue had received applications from 14,75,008 valid applicants who had applied for a total of 16,72,10,000 units. The issue was oversubscribed more than 2.21 times. 

As per the allotment module, a total of 14,75,008 valid applicants have been allotted 10 units to 50 units as per applied units and the lucky 4,92,072 applicants were allotted 10 units extra through lottery. 

Allotment:

34,030 applicants = 10 units

29,854 applicants = 20 units

20,248 applicants = 30 units

16,934 applicants = 40 units

1,79,938 applicants = 50 units

11,94,004 applicants = 50 units

4,92,072 applicants = Extra 10 units received via second lottery

A total of 1,60,000 units were allotted to the staff of the company and 40,00,000 units to mutual funds.

In total 6,276 applicants who applied for 5,95,440 units were disqualified.

The IPO result can be accessed by sharesansar.com- IPO result page soon.

Allotment Module:

This is the biggest IPO in the history of Nepal's capital market.

With a vision to be the nodal financial institution of the nation for infrastructure development, the bank started its commercial operation in March- 06, 2019. Nepal Infrastructure Bank Limited (NIFRA) is established as a National Level Infrastructure Development Bank with the focused objective of accelerating the development of infrastructure of the nation. The bank obtained the operating license from Nepal Rastra Bank on Feb-11, 2019. The bank focuses on infrastructure financing by raising resources from the domestic and international markets through equity, debt, mezzanine, and sector fund structures, issuing on-shore and off-shore bonds and debenture.

The bank was promoted by 41 promoters which include the Government of Nepal with 17% stake, Private sectors (35%), Life Insurance Companies (27%), Nepal Reinsurance Company Limited (4%), and individuals related to leading private business houses of Nepal.

As of 1^st quarter of FY 2077/2078, the company reported a total interest income of Rs. 28.95 crores with a net profit of Rs. 18.01 crores. The company reported earnings per share of Rs. 6 and Net worth per share of Rs. 115.12.