Unique Nepal Laghubitta's FPO Allotment To Be Concluded On Thursday; 37,942 Applicants Get 10 Units Each

The FPO allotment of Unique Nepal Laghubitta Bittiya Sanstha Limited (UNLB) will take place this Thursday, i.e. on 25th Jestha, 2080. The allotment program will be held at the premises of Muktinath Capital, Naxal, Kathmandu.

The company issued 379,425 unit shares to the general public of Rs 100 face value from Jestha 11 to Jestha 17. The current paid-up capital of the company is Rs. 11.06 crores of which 94.01% of shares or 10,40,025 units are of the promoter shareholders in the company while 5.99% or 66,300 units shares are of the public shareholders. However, according to the Banks and Financial Institutions Act of 2073 and the NRB, at least 30% of the issued capital should be retained by public shareholders in order for that the company issued 3,79,425 units of FPO shares to the general public. At present, the promoter: public share structure is a 94: 6 ratio, which after this FPO will be a 70: 30 ratio.

According to data presented by CDSC, the issue has received approximately 12,85,226 applications applying for a total of 14,961,420 units of shares till the closing day. Thus, the FPO was oversubscribed by 39.4 times in terms of the number of units through ordinary applicants.

Looking at the data, it is apparent that only 37,942 lucky applicants will get ownership of the company.

CARE Ratings Nepal Limited (CRNL) has revised the rating assigned to Unique Nepal Laghubitta Bittiya Sanstha Limited’s (UNLB) issuer rating to CARE-NP B+ (Is) from CARE-NP BB- (Is). Issuers with this rating are considered to offer a high risk of default regarding the timely servicing of financial obligations, in Nepal.