Chautari Laghubitta's IPO oversubscribes by massive 30.50 times; About 80% applicants to go empty handed

Chautari Laghubitta Bittiya Sanstha has seen oversubscription of over 30.50 times till the last day.

Chautari Laghubitta had been floating 5,60,700 units IPO from Mangsir 19 till Mangsir 23, 2075 i.e today.

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.

NIBL Ace Capital has been appointed as the issue manager for the IPO issuance.

As per the information received, 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.

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

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.