Nagbeli scrip to debut on April 3 at Rs 432.52

ShareSansar, March 28:

Almost three and a half months after floating its Initial Public Offering, Nagbeli Laghubitta Bikas Bank Limted inked an agreement with Nepal Stock Exchange Limited (NEPSE) yesterday for the listing of the primary shares.

Nagbeli’s scrip will debut in the share market on April 3.

As the IPO was oversubscribed by 341.65 percent ( and the allotment percentage up to 500 units was 0.569 percent, and from 510 to 4210 units was 0.221 percent and from 4300 to 5000 units was 0.23 percent), Nagbeli’s scrip will debut at Rs 434.52 i.e. three times its net worth per share though the price band ranges from Rs 144.84 to Rs 432.52, according to stock analysts.

Allotment of the 'historic' Initial Public Offering (IPO) of 42,900 unit equity shares floated by the microfinance development bank had taken place on January 13.

NMB Capital is the RTS of the microfinance company based at Anarmani VDC of Jhapa.

It may be recalled that those who had applied up to 4,210 units of the IPO were placed under the lottery.

It is interesting to note that the minimum allotted units per group were 10 units and the maximum allotted units for any group was 11 units.
According to stock analysts, since the cost of fund is significantly high, up to Rs 1,300 roughly, and since the maximum allotted units are 11 for any group, it will not be easy to trade the stocks in the market.

The microfinance development bank based in Birtamod of Jhapa district has paid-up capital of Rs 1 crore 10 thousand, and its paid-up capital will rise to Rs 1.43 crore after the issuance of the IPO.

The bank’s promoters have 70 percent holding in the company as of now. As the end of the last fiscal year 2069/70, its EPS (annualized) stood at Rs 34.54, and its net worth per share at Rs 144.84.