Kalika Microcredit debuts today; trading range has been set at Rs 119-357

ShareSansar, January 28:

The primary shares of Kalika Microcredit Development Bank Limited are being traded from today.

Nepal Stock Exchange Limited has given a stock symbol  “KMCDB” to the scrip floated through an Initial Public Offering of 2 lakh unit of ordinary shares by Kalika in November.

The trade range of the scrip has been fixed at Rs 119-357.

Notably, since Kalika IPO was oversubscribed by 60.699 percent, the shares are expected to debut at the higher range considering the high cost of investment on the scrip.

The shares would debut at the higher range and continue to rise further, if the perfomance of the recently issued IPOs of the other microfinance development banks and other BFIs as well as the hydropower companies are anything to go by.

As 56.02 percent of the applicants for the Kalika's IPO were from the small group, the allotment was made flatly at 1.647 percent, and the applications for up to 550 units were put to lottery.
 
Of the total 23, 458 applications, excluding 32 applications from the staff, only 23,258 applications were valid.

Before the IPO, Kalika Micro Credit had an authorized capital of 10 crore, issued capital of Rs 5 crore and a paid-up capital of Rs 3 crore.

The micro credit development bank has stated that following the IPO its paid-up capital has risen to Rs 5 crore.