Nagbeli IPO allotment: Upto 4,210 units in lottery; maximum allotted units 11

ShareSansar, January 13:

Allotment of the Initial Public Offering (IPO) of 42,900 unit equity shares floated by Nagbeli Laghubitta Bikas Bank Limted,  has taken place today.

As per the allotment model developed by the issue manager, NMB Capital Limited, those who applied up to 4,210 units have been placed under the lottery.

It is interesting to note that the minimum allotted units per group is 10 units and the maximum allotted units for any group is 11 units.

The allotment model was designed in that manner since the IPO was oversubscribed 341.65 percent, and the allotment percentage up to 500 units was 0.569 percent, and from 510 to 4210 units is 0.221 percent and from 4300 to 5000 units is 0.23 percent.

"As we had to ensure that each of the groups get at least 10 units of share, we prepared the model accordingly" according to NMB officials. "Otherwise, none of the smaller investors would have got any shares."


There were a total of 18,339 applicants of which 26 were disqualified. Likewise, only one mutual fund – Siddhartha Capital – had applied for the primary shares. Altogether 2145 units were allotted to the mutual fund.

Now the primary shares will be listed for trading at NEPSE within two weeks, according to the officials concerned.

According to stock analysts, since the cost of fund is significantly high, up to Rs 1,300 roughly, and since the maximum allotted units are 11 for any group, it is very difficult to trade the stocks in the market.

There were more than 19,000 applicants, including both institutional and small investors, according to the issue manager.

Long serpentine queues could be seen throughout the office hours till the eleventh hour on the closing day in front of the centers where the IPO application forms were to be submitted.

Altogether 858 units had been set aside for the bank’s staff and 2,145 units to the mutual funds and the rest to the general public.

The applicants could apply for at least 50 units and up to 5,000 units.

The microfinance development bank based in Birtamod of Jhapa district has paid-up capital of Rs 1 crore 10 thousand, and its paid-up capital will rise to Rs 1.43 crore after the issuance of the IPO.

The bank’s promoters have 70 percent holding in the company as of now. As the end of the last fiscal year 2069/70, its EPS (annualized) stood at Rs 34.54, and its net worth per share at Rs 144.84.