IPO of Jalpa Samudayik Laghubitta Closes With Highest Number of Applicants Ever: Only 1 in 60 Applicants Will Get 10 Units

Jalpa Samudayik Laghubitta Bittiya Sanstha Limited has closed the IPO issue for 5,22,000 shares today. The issue had opened from 21st Magh. It concluded today at the early closing date, i.e. on 25th Magh, 2078 since the issue was oversubscribed on the first day itself.

The company had submitted an application to SEBON requesting to issue 32.625% of its issued capital in the form of an IPO. SEBON approved the application on January 24. Prabhu Capital was appointed the issue manager for the proposed IPO issue.

The company has a total of 16 lakh registered shares of which 5.22 lakh shares have been issued in the upcoming IPO. Thus, the IPO will raise a total of Rs. 5.22 crores in paid-up capital. 0.5% of the issue, i.e. 8,000 units have been set aside for the employees of the company and 5%, i.e. 26,100 units to mutual funds. The remaining 4,87,900 units were purely for individual investors.

According to CDSC, 26,59,540 applicants have applied for a total of 3,25,20,580 units, the highest number of applicants seen in a single IPO issue. This is the data after the issue closed at 5 pm today. Thus, the issue has been oversubscribed 66.65 times.

Update: The press release sent by the issue manager Prabhu Capital states that the final data is 27,06,767 applicants for 3,31,13,300 shares.

Looking at the data, it seems that only 1 in 60 applicants have the probability of being allotted 10 units.

ICRA Nepal Limited had assigned the [ICRANP-IR] BB rating to the IPO of Jalpa Samudayik Laghubitta Bittiya Sanstha Limited. Issuers with this rating are considered to have a moderate risk regarding timely servicing of financial obligations, in Nepal.