Nagbeli refunding non-allottees from today

ShareSansar, January 16:


Nagbeli Laghubitta Bikas Bank Limted is refuding the money to the non-allottees from today.

Allotment of the 'historic' Initial Public Offering (IPO) of 42,900 unit equity shares floated by the microfinance development bank had taken place on January 13.

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

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


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.