IPO of Janautthan gets overwhelming response; oversubscribed by 9 times on first day

ShareSansar, March 2:

Janautthan Samudayic lagubitta Bikas Bank Limited has started floating its Initial Public Offering (IPO) from March 1 (yesterday). Today is the second day of IPO. The IPO is oversubscribed by approx 9 times in very first day.

The issue is managed by Growmore Merchant Banker Limited and the offer will close on Falgun 20. The maximum closing date has been set for Chaitra 1.

According to the Growmore Merchant Bank official, the total collection of the first day of issue was approximately Rs. 8 crore. 

The official also added that the issue may oversubscribe by 100 times and above seeing the demand from the investors for the microfinance company.

Janautthan is floating a total 90,000 units of ordinary shares at face value of Rs 100.

The bank has set aside 4,500 units of shares for the mutual funds. The mutual fund companies who have bought the shares are Nabil Balance fund 1, Siddhartha lagani Buddhi Yojana-1, Siddhartha Equity-Oriented Scheme, NMB Sulav Fund-1 and NIBL Sambriddhi Fund-1. 

Likewise, 2,700 units have been allocated to the staff member of Janautthan. Therefore, common investors can apply only for the remaining 82,800 units of shares.

An applicant must apply for a minimum of 10 units i.e. Rs 1,000 investment, while they can apply for a maximum of 2,000 units. Or Rs, 2,00,000 in one name.

The collection centers details are in the table below:

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The existing paid up capital of the company is Rs. 1.10 crore and after issuing the IPO the development bank paid up Capital will rise to Rs 2 crore.

It earned a net profit of Rs 26.10 lakh in the fiscal year 2070/71 and has Rs 29.94 lakh in its reserve fund.  The company’s EPS stands at Rs 23.73.