Matribhumi IPO oversubscribed by around 4 times

ShareSansar, November 26:

Matribhumi Bikas Bank Limited is closing its Initial Public Offer of 1.54 lakh unit equity shares from today as the IPO has already been oversubscribed.

The development bank based in Sindhuli had issued the IPO on November 21.

The IPO has fetched more than Rs 2 crore by yesterday, according to Civil Capital Market, the issue manager. It is also noteworthy is that 90 percent of those who have applied for the IPO are the locals of Sindhuli.

The issue managers expect that the IPO to be oversubscribed by around 4 times or around Rs 5 crore today as the institutional investors usually apply on the last day.

Nevertheless, this figure is comparatively quite low compared to the huge response to the IPOs of the BFIs and a hydropower company issued over the recent weeks.

Of the total equity shares issued, 3,080 units have been set aside for the bank’s staff and the remaining 1,50,920 units to the general public.

The applicants must apply for at least 20 units and up to 5,000 units.

According to the unaudited fourth quarterly report of the development bank, it ahd posted a net profit of Rs 15.15 lakh in the last fiscal year 2069/70.

Its paid-up capital stands at Rs 2.86 crore and the reserve at Rs 52.35 lakh.

It mobilized Rs 23.37 crore in deposit and Rs 19.01 crore in loan in the previous quarter.

Its NPL stands at 3.49 percent though its per share net worth stands at Rs 118.17.

After the issuance of the IPO, the development bank’s paid-up capital will rise to Rs 4.4 crore.