Mount Makalu IPO closing today; oversubscribed by over 35 times in 3 days

ShareSansar, April 16:

Mount Makalu Development Bank’s Initial Public Offering (IPO) of Rs 60 lakh has been oversubscribed by more than ten times by first three days.

“We have collected more than Rs 21 crore by the third day yesterday, up from Rs 6.89 crore collected by Friday, the second day,” a source at Growmore Merchant Banking, which is managing the issue, told ShareSansar today.

Since most of the institutional investors apply only on the last day, the IPO is very likely to be oversubscribed by at least another 35 times today. Hence, the IPO is likely to be oversubscribed by at least 70 times.

The IPO was floated from April 11.

Of the total 60,000 units of primary shares being floated, 3,000 units have been earmarked for the mutual fund, 1,200 units for the staff and the rest for the general public.

This IPO is attracting many inventors due to the sound financial statement of the company.

The bank’s net worth per share during last fiscal year is Rs.120.13 and earning per share is Rs.13.43 which indicates sound financial statement.

After the issuance of IPO, the bank’s paid-up capital will be Rs.2 crore. Credit rating for this IPO is not necessary due to its capital which is less than 2 crore.

Securities Board of Nepal had approved of the IPO in February 17.

Mount Makalu Development Bank is based in Basantapur VDC of Terhathum District.

The Bank was registered in Company Registrar Office on 2066 Mangsir 19th as a Public Limited Company with limited liability on shares.

Similarly it received permission from Nepal Rastra Bank to conduct financial transaction on 2067 Ashad 30th with financial institution of "B" Class (One District) with its activities in Terhathum district.

The bank has started its financial transaction on 2067 Shrawan 5th from its head office at Basantapur, Terhathum.