Chautari Laghubitta’s IPO likely to be allotted on Friday; About 80% applicants to go empty handed

The IPO of Chautari Laghubitta Bittiya Sanstha Limited is likely to be allotted on Friday. The issue manager, NIBL Ace Capital said that the tentative date for the allotment has been fixed on Friday.

Chautari Laghubitta had floated 5,60,700 units IPO from Mangsir 19 till Mangsir 23, 2075 . Out of total 6 lakh unit ordinary shares, 9,300 units have been issued to the employees whereas 5% i.e. 30,000 units have been issued to the mutual funds. Remaining 5,60,700 units will be issued for the general public.

ICRA Nepal had assigned Grade 4 rating to the IPO issuance indicating below average fundamentals.

More than 2.73 lakh applicants have applied for 1.71 crore units making the issue to be oversubscribed by about 30.50 times. About 80% of the total applicants will go empty handed during the allotment.

The company posted operating profits worth Rs.28.23 Lakhs and net profits worth Rs.37.48 Lakhs for the end of the first quarter of the current fiscal year.

After the allotment of IPO, the paid-up capital of the company will reach Rs Rs 18.60 crore.