RSDC Laghubitta IPO allotment concludes today; up to Rs 255,000 under lottery; Rs 4 lakh investors allotted 14 units

Sun, Oct 16, 2016 2:09 PM on Latest, IPO/FPO News, Featured, Stock Market,
RSDC Laghubitta Bittiya Sanstha Limited has concluded its IPO allotment today at the premise of its issue manager NIBL Capital Markets Limited located at Lazimpat, Kathmandu at 1:00 PM. Allotment for investors who had applied from Rs 5,000 or 50 units to Rs 255,000 or 2550 units shares was decided through lottery and remaining investors who applied for Rs 25,6000  or 2560 units to Rs 4,00,000 or 4000 units were allotted  11 to 14 units or 0.35 % to .388% on pro-rata basis. RSDC Laghubitta Bittiya Sanstha Limited had issued 4, 00,000 unit shares worth Rs 4 crore as part of its initial public offering (IPO) from Bhadra 5, 2073 till Bhadra 8, 2073 at face value of Rs 100. The IPO was oversubscribed by 222.84 times till last day. Interested investors were required to apply for a minimum of 50 units of share and they can apply for up to 4,000 units of share. NIBL Capital Markets Limited has been appointed as the issue manager for the IPO. Of the total 3, 72, 000 unit shares set aside for general public. 40% or 148,800 units shares, were put aside for retail investors and 60% or 223,200 shares, under “other investor” category. Retail investors applied for a total of 21,312,360 unit shares and those in the others category demanded 60,156,850 units shares. The shares set aside for retail investors were oversubscribed by 143.23 times and those set aside under other category were oversubscribed by 269.52 times. Of the total 155,058 applicants only 33,088 investors got the shares including 7 mutual fund and 9 staffs. There were only 231 invalid applicants. The microfinance company plans to raise Rs 4 crore through the offer. After the IPO, the paid up will reach Rs 10 crore from the current Rs 6 crore. It’s authorized capital stand at Rs 20 crore. After the IPO, the promoter-public ratio of the company will be 60 % to 40%. RSDC Laghubitta earned net profit of Rs 1.50 crore in Q4 of the last fiscal year 2072/73. RSDC Laghubitta is a wholesale level microfinance company. And as per recent monetary policy guidelines by NRB, such companies has to maintain Rs 60 crore minimum paid up capital by the end of 2074/75 FY.