Massive oversubscription of Aarambha Microfinance IPO; one out of six applicants to grab 10 unit shares in lottery; IPO result to come out in 10-15 days

Aarambha Microfinance Bittiya Sanstha Limited which had closed issuance of its 2.94 lakh unit shares worth Rs 2.94 crore on Falgun 21 has raised tentatively Rs 120 crore from 1.89 lakh applicants. This collection is about 40.8 times of the total issue. “These data don’t represent the final figure as the final verification and correction are still going on”, informs the official with issue manager. “The final data could vary to some extent however no significant difference would be seen”, as per the information. After the compulsory implementation of C-ASBA system, this is the first public issue which would be seeing its share allotment in a fast-track basis. According to the official with the issue manager, if all process including statutory validation goes ahead smoothly, the applicants would find the allotment result within a week. In case of some delay though, the applicants should be able to get hold of the allotment result in maximum 12-15 days, as informed further. The microfinance company has set aside 3% or 8,820 unit shares for its employees and 5% or 14,700 unit shares for the existing mutual fund companies. The company had floating 2,70,480 units shares to general public. NIC Asia Capital Limited is the issue manager for IPO. Aarambha Microfinance is located at Banepa, Kavrepalanchowk district of Nepal. Aarambha Microfinance had initiated micro finances operations in Baisakh 27, 2071. The main vision of the microfinance company is to create opportunity for deprived people by providing resources. It has 15 branch offices till now. Aarambha has been providing micro financing services to deprived household residing in hilly regions of Nepal. Aarambha Microfinance Bittiya Sanstha Limited has paid-up capital of Rs 3.06 crore, and after issuance of IPO shares its capital will reach Rs 6 crore. It had posted net profit of Rs 6.19 lakh in the FY 2073/74.