IPO allotment of Manakamana Smart Laghubitta concludes; lucky 36,349 investors get 10 units each and remaining 19,15,172 applicants return empty hands

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

Manakamana Smart Laghubitta Bittiya Sanstha Limited had issued 3,89,000 units worth Rs 3.89 crore as Initial Public Offering to the general public from (Ashad 17-21, 2078). 

Out of the offered 3,89,000 units; 0.5% of the issued capital i.e. 6,058 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 19,450 units have been set aside for the mutual funds. The remaining 3,63,492 units are for the general public.

The issue had received applications from 19,51,521 valid applicants who had applied for a total of 2,50,95,370 units. The issue was oversubscribed more than 69.03 times. 

As per the allotment module, a total of 36,349 applicants were allotted 10 units each via lottery, and two luck applicants get 1 unit extra, and the remaining 19,15,172 applicants were returned empty hands. 

A total of 6,058 units were allotted to 79 staff of the company and 19,450 units were allotted to 13 mutual funds.

In total 2,753 applicants who applied for 37,920 units were disqualified.

Allotment Module:

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

After the issuance of 3,89,000 units worth Rs 3.89 crore IPO shares the general public i.e 32.11% of total capital which will together raise its paid-up capital to Rs 12.11 crore and the promoter/public ratio will be 67.89:32.11. 

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP Issuer Rating Double B minus) to Manakamana Smart Laghubitta Bittiya Sanstha Limited (MSLBSL). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.

Incorporated in January 2018, as Manakamana Laghubitta Bittiya Sanstha Limited, the company started its operation in February 2018 as a licensed 10-district level class D microfinance institution. Later, the company merged with Smart Laghubitta Bittiya Sanstha and started joint operations from July 26, 2020, as a province-level (licensed to operate in Province 5) regional MFI in the name of Manakama Smart Laghubitta Bittiya Sanstha Ltd (MSLBSL). MSLBSL is promoted by 69 individual promoters engaged in different professions. Mr. Dev Singh Bista is the Chief Executive Officer of the company. The registered and corporate office of MSLBSL is in Siddharthanagar-5 Rupandehi, Nepal.