The IPO allotment of Upakar Laghubitta Bittiya Sanstha Limited is concluded today at the premises of the issue manager Nepal SBI Merchant Banking Limited, Hattisar, Kathmandu.
Upakar Laghubitta Bittiya Sanstha Limited had issued 2,36,250 units worth Rs 2.36 crore as Initial Public Offering to the general public from (Chaitra 25-29, 2078).
2,36,250 shares will be issued at a par value of Rs. 100 per unit. Of the total public issue, 0.5%, i.e. 3,281 shares have been reserved for employees while 5%, i.e. 11,813 shares for mutual funds. The remaining 2,21,156 shares are then for the individual public.
The issue had received applications from 23,49,056 valid applicants who had applied for a total of 2,62,30,930 units. The issue was oversubscribed more than 118.60 times.
As per the allotment module, a total of 22,115 applicants were allotted 10 units each via lottery, 6 lucky applicants get 1 unit each extra and the remaining 23,26,941 applicants were returned empty hands.
A total of 3,281 units were allotted to the staff of the company and 11,813 units were allotted to mutual funds.
In total 2,406 applicants who applied for 26,720 units were disqualified.
The IPO result can be accessed by CDSC IPO Result, and MeroShare.
Upakar Laghubitta Bittiya Sanstha Limited is registered as a 'D' class Financial Institution (Microfinance Bank) with a capital of 60 million licensed by Nepal Rastra Bank. It was transferred from the microfinance program of Mahila Upakar Munch. The paid-up capital of this institution is 42.2 million. It is established on Magh 17, 2075 at Kohalpur, Banke, started its services on 1st Chaitra 2075, and registered according to the company Act on Shrawan 25th 2075. It operates 15 branches in 2 districts of province no. 5 Nepal namely Banke & Bardiya.
After the issuance of 236,250 units worth Rs 2.36 crore IPO shares the general public i.e., 36% of total capital will together raise its paid-up capital to Rs 6.56 crore, and the promoter/public ratio will be 64:36.
ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to ULBSL. Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.