Mount Makalu IPO oversubscribed by more than ten times in two days

ShareSansar, April 15:

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

“The IPO has already fetched Rs 6.89 crore (and counting) by Friday, the second day,” a source at Growmore Merchant Banking, which is managing the issue, told ShareSansar today. “We are receiving a lot more applications today, and much more on the last day tomorrow when the institutional investors usually apply.”

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.

The IPO will close tomorrow (on April 16).

This IPO is also expected to attract many inventors due to its sound financial statement.

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.