IPO allotment of Manushi Laghubitta concludes; lucky 36,859 investors get 10 units each and remaining 23,17,925 applicants return empty hands

The IPO allotment of Manushi Laghubitta Bittiya Sanstha Limited is concluded today at the office of issue manager SBI Merchant Banking Limited, Hattisar, Kathmandu. 

Manushi Laghubitta Bittiya Sanstha Limited had issued 3,93,750 units worth Rs 3.93 crore as Initial Public Offering to the general public from (Shrawan 27-31, 2078). 

Out of the offered 3,93,750 units; 0.5% of the issued capital i.e. 5,469 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 19,688 units have been set aside for the mutual funds. The remaining 3,68,593 units are for the general public.

The issue had received applications from 23,54,784 valid applicants who had applied for a total of 2,95,74,750 units. The issue was oversubscribed more than 80.23 times. 

As per the allotment module, a total of 36,859 applicants were allotted 10 units each via lottery, and three luck applicants get 1 unit extra, and the remaining 23,17,925 applicants were returned empty hands. 

A total of 5,469 units were allotted to the staff of the company and 19,688 units were allotted to the mutual fund's scheme.

In total 7,043 applicants who applied for 80,710 units were disqualified.

Allotment Module:

The IPO result can be accessed by iporesult.cdsc.com.np and http://meroshare.cdsc.com.np.

After the issuance of 3,93,750 units worth Rs 3.93 crore IPO shares the general public i.e 36% of total capital which will together raise its paid-up capital to Rs 10.93 crore and the promoter/public ratio will be 64:36. 

CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating of “CARE-NP B+ (Is) [Single B Plus (Issuer)]” to Manushi Laghubitta Bittiya Sanstha Limited (MLBSL). Issuers with this rating are considered to offer a high risk of default regarding timely servicing of financial obligations, in Nepal.

Manushi Laghubitta Bittiya Sanstha Ltd. (MLBSL) is a “D” class national level microfinance incorporated on June 24, 2018, licensed by Nepal Rastra Bank on October 11, 2018, and commenced operation on October 29, 2018. Thereafter, MLBSL took over the microfinance business conducted by the Manushi, an NGO established in 1991 and operating as a financial intermediary since April 2002 in Nepal. MLBSL 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.