Reliable Microfinance IPO concludes; 45,246 investors luck decided through lottery

ShareSansar, August 19:

Lamjung based Reliable Microfinance Bittiya Sanstha Limited has concluded its IPO allotment today at the premises of issue manager Civil Capital Market Limited at Kamaladi , Kathmandu at 5:00 PM.

Reliable Microfinance had floated 1, 50,000 unit shares as part of its initial public offering (IPO). The offer closed on Ashad 25, 2072.

Since the allotment took place through lottery, all allottee were eligible for a minimum of 10 unit shares.

Investors were required to apply minimum of 50 units of share and maximum range was up to 1,000 units of share.

Given the high number of applicants, allocation on pro rata basis was not possible so the allotment was made through lottery system. Allotment of all applicants from minimum Rs 5,000 to maximum Rs 1,00,000 amount investors were decided through lottery.

Of the total 1,39,500 shares set aside for the general public, 40 % or 55,800 unit shares, were put aside for retail investors and 60 % or 83,700 unit shares, under “other investor” category. Retail investors applied for a total of 5,63,403 unit shares and those in the others category demanded 88,66,520 units.

All the investors who had applied for Rs 5,000 or 50 units to Rs 1,00,000 or 1,000 units shares was decided through lottery. Of the total 45,246 applicants only 13,995 investors got the shares.  

There were only 311 invalid applicants. Altogether 39 staffs were allotted 3,000 units and six mutual fund schemes were given 7,500 unit shares.

Out of the total 1,50,000 unit shares, the microfinance has set aside 7,500 unit shares for the mutual fund schemes and 1,42,500 for general public which also includes 3,000 unit shares for its employees.

The microfinance company plans to raise Rs 1.50 crore through the offer. After the IPO, the paid up will reach Rs 5 crore from the current Rs 3.50 crore. After the IPO, the promoter-public ratio in the company will be 70% to 30%.

It earned a net profit of Rs 41.07 lakh in its 2nd quarter of the fiscal year 2071/72 and its net worth per share stands at Rs 97.67.