Support Microfinance IPO oversubscribed by 70.71 times till third day; Collects 1.18 arba from 1.43 lakh applicants

Support Microfinance Bittiya Sanstha Limited has been floating its Initial Public Offering (IPO) of 1,80,000 unit shares worth Rs 1.80 crore from Ashwin 18, 2074. Today is the last day of the IPO. The IPO has been oversubscribed by 70.71 times till third day. As per the official of NMB Capital Limited, the issue manager for the IPO, “the issue has collected Rs 1.18 arba till third day. More than 1 lakh 43 thousand application forms were received.” Interested investors were required to apply for a minimum of 50 units of share and they can 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 will be floating 1,67,400 units shares to general public. NMB Capital Limited is the issue manager for IPO. Interested applicants can collect ASBA forms from all ASBA-approved banks around Nepal as Securities Board of Nepal (SEBON) has made ASBA application mandatory from Shrawan 2074. The microfinance company plans to raise Rs 1.80 crore through the offer. After the IPO, the paid up will reach Rs 6 crore from the current Rs 4.20 crore. Its authorized capital stand at Rs 15 crore. After the IPO, the promoter-public 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.