Mount Makalu IPO oversubscribed by over 60 times; draws more than Rs 36 crore

ShareSansar, April 17:

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

“As we compile the final amount, the figure emerging out suggests that the IPO has been oversubscribed by more than 60 times, a source at Growmore Merchant Banking, which is managing the issue, told ShareSansar today. “By the last day yesterday, we have collected around 36.19 crore. But this figure may increase as we are still compiling the applications.”

She further informed that there were a little more than 1,000 applicants.

The IPO had fetched up from Rs 6.89 crore collected by the second day, and more than Rs 21 crore by the third day, according to Growmore.

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.140 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.