Mt Makalu IPO flatly allotted at 1.53%, up to Rs 63 k face lottery
Sun, May 25, 2014 12:00 AM on IPO/FPO Result News,
ShareSansar, May 25:
The allotment of Mount Makalu Development Bank’s Initial Public Offering (IPO) of Rs 60 lakh has been held on Saturday.
As per the allotment model, those who had applied for up to 630 units or Rs 63,000 have been placed under lottery, which means that all the retail investors have been placed under lottery.
The IPO floated from April 11 to April 16 had been oversubscribed by a little more than 60 times, according to the issue manager, Growmore Merchant Banking Limited.
There were a little more than 1,000 applicants from both the retail and institutional investors.
‘The allotment took place Saturday morning in our office at Durbar Marg,” an official with Growmore told ShareSansar today.
Since the IPO was oversubscribed by 60 times, it is allotted at a flat rate of 1.53 percent.
Of the total 60,000 units of primary shares floated, 3,000 units had been earmarked for the mutual fund, 1,200 units for the staff and the rest for the general public.
This IPO had attracted many inventors due to the sound financial statement of the company.
The bank’s net worth per share during last fiscal year is Rs.140 and earning per share is Rs.13.43 which indicates sound financial statement.
After the issuance of IPO, the bank’s paid-up capital will be Rs.2 crore. Credit rating for this IPO is not necessary due to its capital which is less than 2 crore.
Securities Board of Nepal had approved of the IPO in February 17.
Mount Makalu Development Bank is based in Basantapur VDC of Terhathum District.
The Bank was registered in Company Registrar Office on 2066 Mangsir 19th as a Public Limited Company with limited liability on shares.
Similarly it received permission from Nepal Rastra Bank to conduct financial transaction on 2067 Ashad 30th with financial institution of "B" Class (One District) with its activities in Terhathum district.
The bank has started its financial transaction on 2067 Shrawan 5th from its head office at Basantapur, Terhathum.
