IPO Allotment Concludes: Jalpa Samudayik Laghubitta Welcomes Aboard 48,790 Lucky Public Investors

The IPO allotment of Jalpa Samudayik Laghubitta Bittiya Sanstha Limited is concluded today at the premises of the issue manager Prabhu Capital Limited. 

Jalpa Samudayik Laghubitta Bittiya Sanstha Limited had issued 5,22,000 units worth Rs 5.22 crore as Initial Public Offering to the general public from (Magh 21-25, 2078). 

Out of the offered 5,22,000 units; 0.5% of the issue, i.e. 8,000 units have been set aside for the employees of the company and 5%, i.e. 26,100 units to mutual funds. The remaining 4,87,900 units are purely for individual investors. 

The issue had received applications from 25,91,702 valid applicants who had applied for a total of 3,07,16,830 units. The issue was oversubscribed more than 62.95 times. 

As per the allotment module, a total of 48,790 applicants were allotted 10 units each via lottery, and the remaining 25,42,912 applicants were returned empty hands. 

A total of 8,000 units were allotted to the staff of the company and 26,100 units were allotted to mutual funds.

In total 4,290 applicants who applied for 50,640 units were disqualified.

The company chairman Mr. Bir Bahadur Adhikari expressed the company's gratitude to applicants, the issue manager, SEBON, journalists, and all other participants in the process. While the company is currently serving 95,000 clients from 28 districts via 524 employees, Adhikari said that they plan to reach 60 districts via 900 employees and invest Rs. 8 Arba in the near future.

Furthermore, Adhikari also stated that the board members have 15-20 years of experience in the banking and finance industry. The company is backed by commercial banks and development banks as promoters, which enables it to get seasoned advice and guidance when needed.

Allotment Module

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

After the issuance of 5,22,000 units worth Rs 5.22 crore IPO shares the general public i.e 32.625% of total capital which will together raise its paid-up capital to Rs 16 crore and the promoter/public ratio will be 67.375:32.625. 

Jalpa Samudayik Laghubitta Bittiya Sanstha Limited started joint operation in December 2020 following the merger of two regional level microfinance: Jalpa Laghubitta Bittiya Sanstha Limited, which was operating in 10-district since March 2019, and another Mahila Samudayik Laghubitta Bittiya Sanstha Limited which was operating in 10-district since February 2019.

The company is currently operating in 19 districts through 76 branches. Srijana Development Centre(32%), Nepal Women Community Service Centre (24%), Prime Commercial Bank Limited (6%), Jyoti Bikas Bank Limited (5%), Pokhara Finance Limited (5%) are the major promoters of the company.

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