Support Microfinance IPO collects Rs 2.24 arba from 2.36 lakh applicants; only 1 in 14 applicants to be allotted

Support Microfinance Bittiya Sanstha Limited had floated its Initial Public Offering (IPO) of 1,80,000 unit shares worth Rs 1.80 crore from Ashwin 18, 2074 till Ashwin 23, 2074. The IPO has been oversubscribed by 133.96 times till last day. As per an official of NMB Capital Limited, the issue manager for the IPO, the issue has collected Rs 2.24 arba till last day. More than 2 lakh 36 thousand applications were received. “The data are preliminary and the final output may vary.” added the official. Since the total number of applicants was between 2 lakhs and 3 lakhs, the allotment will now be completed within 40 days of the issue’s closing day i.e. within November 18, 2017. Interested investors were required to apply for a minimum of 50 units of share and they could apply for up to 900 units of share. The microfinance company has set aside 2% or 3,600 unit shares for its employees and 5% or 9000 unit shares for the existing 11 mutual fund companies. The company had issued 1,67,400 units shares to general public. As per the Securities Issue and Allotment Guidelines 2074, a minimum of 10 units is reserved for each applicant whenever possible. In this case, only 16,740 general public applicants out of more than 2,36,000 applicants will be allotted 10 units of share. Only 1 out of 14 applicants will receive 10 shares each via lottery. After the IPO, the paid up will reach Rs 6 crore from the current Rs 4.20 crore. Its authorized capital stands at Rs 15 crore. After the IPO, the promoter-public shareholding ratio of the company will be 70 % to 30%. Support Microfinance has earned Rs 48.04 lakh in the fourth quarter of the fiscal year 2073/74. At present, the microfinance is rendering its services in 10 districts.