Kalinchowk IPO oversubscribed by 9.5 times in 3 days; final data still being compiled

ShareSansar, August 13:

The Initial Public Offering (IPO) worth Rs 4.9 crore of Kalinchowk Development Bank Limited, which closed yesterday, has been oversubscribed by 9.5 times.

According to Growmore Merchant Banker Limited, which is managing the IPO, the IPO is likely to oversubscribed by much more times, though they are still compiling the final data.    

Institutional investors usually apply only the last day of the issue, and on that basis the issue is likely to oversubscribed by at least 20 times.

Of the total 4.9 lakh units of ordinary primary share floated since August 6, altogether 9,700 units have been allocated for the staff and 24,500 units for the mutual fund.

The development bank’s net worth per share during the third quarter of the last fiscal year was Rs 103.32 and the earning per share was Rs 3.65.

Likewise the net profit of the development bank in the third quarter of the fiscal year 2070/71 was Rs 18.62 lakh, the reserve was Rs 36.20 lakh and the paid-up capital was Rs 5.10 crore.   

The development bank is “B” class bank based in Dolakha district and is functional in three districts that are Dolakha, Sinduli and Ramechhap.