Naya Nepal IPO gets listed; Kalika's deferred till next week

ShareSansar, January 17:

The Initial Public Offering (IPO) of Naya Nepal Lagubitta Bikash Bank has been listed on Friday.

The Chief Executives of the microfinance development bank and the NEPSE signed the listing agreement today. Now the IPO will be floated for trading in a week’s time.

However, the IPO of Kalika Micro Credit Development Bank Limited could not be listed today though the issue manager NMB Capital as well as the microfinance had tried to list it together with Naya Nepal.

NMB Capital was the issue manager for both the IPOs of microfinance development banks.
 
"We could not get the Kalika IPO listed due to a minor technical snag," an official with the issue manager told ShareSansar. "It will be listed on Monday, if everything goes as planned."

It may be noted that though floated in October, the IPO of Naya Nepal Lagubitta Bikash Bank took a little longer to get allotted and listed.

It was flatly allotted to both the small and big investor at 1.67 percent on November 15 as 66 percent of the applicants were from smaller investor group.

Since the IPO was oversubscribed by more than 50 times, the allotment of shares for investors who had applied for up to 560 shares was done through a lottery.

The microfinance development bank had floated 60,000 unit equity shares of face value Rs 100 each on October 3, and had closed it on October 6.

Of the 60,000 units being floated in the market, 1,200 units were reserved for its staff and 3,000 units have already been allotted to the mutual funds.

The general public had bid for a minimum of 50 units up to a maximum of 5,000 units.

Naya Nepal Lagubitta Bikash Bank has an authorized capital of Rs 4 crore, issued capital of Rs 2 crore and a paid-up capital of Rs 1.4 crore.

The company established five years back in Dhulikhel in Kavrepalanchowk district has further stated that once the IPO is issued, its paid-up capital will be on par with the issued capital.

It had posted a net profit of Rs 19 lakh and 95 thousand in the fiscal year 2068/69.

Likewise, the 2 lakh unit of ordinary shares floated by Kalika in November was oversubscribed by 60.699 percent.

As 56.02 percent of the applicants were from the small group, the allotment was made flatly at 1.647 percent, and the applications for up to 550 units were put to lottery.
 
Of the total 23, 458 applications, excluding 32 applications from the staff, only 23,258 applications were valid.

Before the IPO, Kalika Micro Credit had an authorized capital of 10 crore, issued capital of Rs 5 crore and a paid-up capital of Rs 3 crore.

The micro credit development bank has stated that after the IPO, its paid-up capital will rise to Rs 5 crore.