IPO Allotment of Aatmanirbhar Laghubitta Bittiya Sanstha Concludes; 1 in Every 91 Applicants to Be Allotted with 10 Units

The IPO allotment of Aatmanirbhar Laghubitta Bittiya Sanstha Limited is concluded today at the premises of Sunrise Capital Limited, Kamalpokhari, Kathmandu.

Aatmanirbhar Laghubitta Bittiya Sanstha Limited had issued 1,69,755 units worth Rs 1.69 crore as Initial Public Offering (IPO) to the general public (Falgun 11- 15, 2079). 

Out of the total 203,380 units; 10% i.e. 20,388 units have been allotted to Nepalese citizens working abroad, whereas 1.5326% i.e 3,117 units have been set aside for the employees of the company, and 5% of the total offered shares i.e. 10,170 units have been set aside for the mutual funds. The remaining 1,69,755 units are for the general public.

After the IPO the promoter-public share ratio will be 67.375: 32.625.

The issue had received applications from 15,36,263 valid applicants who had applied for a total of 1,67,86,030 units. The issue was oversubscribed by more than 98.88 times. 

As per the allotment module, a total of 16,975 applicants were allotted 10 units each via lottery and 5 lucky applicants were allotted 1 unit extra, and the remaining 15,19,288 applicants were returned with empty hands. 

A total of 3,117 units were allotted to the employees and 10,170 units were allotted to the mutual funds.

In total 2,203 applicants who applied for 27,150 units were disqualified.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and Sunrise Capital Limited. 

CARE Ratings Nepal Limited (CRNL) has assigned a rating of ‘CARE-NP B+ (Is)’ [Single B Plus (Issuer)] to Aatmanirbhar Laghubitta Bittiya Sanstha Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.

Aatmanirbhar Laghubitta is a “D” class Province Level microfinance institution. It was incorporated on November 20, 2018, licensed by Nepal Rastra Bank on February 12, 2019, and commenced operations on April 15, 2019. Initially, the company commenced its business as Gramin Mahila Utthan Kendra (Rural Women Development Center-RWDC), a financial intermediary. However, lately, the company initiated its operation as a separate financial entity. It is primarily engaged in providing microfinance loans based on the Joint Liability Group (JLG) model with each group consisting of a minimum of five members.