IPO allotment of Jeevan Bikas Laghubitta concludes; lucky 1,84,801 investors get 10 units each and remaining 18,48,015 applicants return empty hands

The IPO allotment of Jeevan Bikas Laghubitta Bittiya Sanstha Limited is concluded today at the office of issue manager NMB Capital Limited. 

Jeevan Bikas Laghubitta Bittiya Sanstha Limited had issued 19,77,300 units worth Rs 19.77 crore as Initial Public Offering to the general public from (Ashad 11-15, 2078). 

Out of the offered 19,77,300 units; 0.5% of the issued capital i.e. 30,420 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 98,865 units have been set aside for the mutual funds. The remaining 18,48,015 units are for the general public.

The issue had received applications from 20,18,308 valid applicants who had applied for a total of 2,97,74,360 units. The issue was oversubscribed more than 16.11 times. 

As per the allotment module, a total of 1,84,801 applicants were allotted 10 units each via lottery and five luck applicants get 1 unit extra; and the remaining 18,33,507 applicants were returned empty hands. 

A total of 30,420 units were allotted to 763 staff of the company and 98,865 units were allotted to 13 mutual funds.

In total 3,471 applicants who applied for 54,240 units were disqualified.

Allotment Module:

The IPO result can be accessed by iporesult.cdsc.com.np, http://jeevanbikasmf.com/en/,  https://nmbcl.com.np/shareallotment, and http://meroshare.cdsc.com.np.

After the issuance of 19,77,300 units worth Rs 19.77 crore IPO shares the general public i.e 32.50% of total capital which will together raise its paid-up capital to Rs 60.84 crore and the promoter/public ratio will be 67.50:32.50. 

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BBB- to Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLBSL), indicating a moderate degree of safety, regarding timely servicing of financial obligations with moderate credit risk.

Incorporated in August 2012 (in Office of Company Registrar), Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLBSL), started its operation from February 2019 as a licensed national level class D microfinance institution taking over the microfinance business being conducted by Jeevan Bikas Samaj (JBS), an NGO, established in September 1997 and operating as a financial intermediary from June 2002.

The company merged with Solve Laghubitta Bittiya Sanstha Limited and Garibi Nyunikaran Laghubitta Bittiya Sanstha Limited and commenced the joint operation from September 7, 2020, under the name Jeevan Bikas Laghubitta Bittiya Sanstha Limited. As of mid-January 2021, the major shareholders of JBLBSL include JBS, NGO (~30%), Prabhu Capital Limited (~13%), SR Hydro and Investment Private Limited (~9%), Social Organization for Liberal Volunteers Engagement of Nepal (SOLVE; 7%), NIC Asia Bank (~3%), Samudayik Mahila Bikas Kendra (SWDEC; ~1%). The registered and corporate office of JBLBSL is located at Katahari-2, Morang, Nepal.

The microfinance company has posted a net profit of Rs 563.93 million in the 3rd quarter company analysis of the fiscal year 2077/78.