Ekata Bikas Bank’s primary shares get listed, trading to start from Sept 17
Thu, Sep 11, 2014 12:00 AM on Share Listed,
ShareSansar, September 11:
Altogether 20 lakh unit ordinary shares of Ekata Bikas Bank Limited issued through the Initial Public Offering in June have been listed at Nepal Stock Exchange Limited for trading.
Since the company signed the share listing agreement with Nepse yesterday, the trading of the stock will start within seven days i.e. from September 17 (Ashoj 1).
Meanwhile, Ekata Bikash Bank has also appointed NMB Capital Limited as its RTS.
Allotment of Ekata’s IPO had taken place on July 14 at the office of NMB Capital, which is the issue manager of the development bank.
It was allotted proportionately at 6.5334 percent, and those who had applied between 50 and 140 units of the primary shares were placed under lottery.
The IPO worth Rs 8 crore floated by the development bank on June 4 was oversubscribed by 15.306 percent by the time the issue closed on June 9.
Among the total 8 lakh issued units, 24,000 units had been set aside for the bank staff, another 40,000 for the mutual funds and the remaining units were floated for the general public.
Securities Board of Nepal (SEBON) had granted approval to the IPO issue on May 13.
The development bank is in operation from May 15, 2011, since then it has always generated profits. The bank has collected Rs 1 arba 13 crore worth deposits and granted a total of Rs 95 crore loans and advances. The customer base of the bank has reached to 16 thousands.
Currently development bank headquartered in Butwal has two branches and nine service centers. The scope of operation is spread over three districts: Dang, Rupundehi and Kapilvastu.
Ekata has posted a net profit of Rs 1.99 core by the 4th quarter of the last fiscal year 2070/71, up from Rs 1.11 crore at the end of the previous fiscal year. Its core business is strong and it has zero non-performing loan so far.
It may be noted that ICRA Nepal, the only credit rating agency in the country, had assigned an IPO Grade 4, indicating below-average fundamentals to the IPO.
