Mt Makalu Development Bank starts distributing primary share certificates

ShareSansar, June 18:

Mount Makalu Development Bank has started distributing the certificates of its Initial Public Offering (IPO) from today.

Growmore Merchant Banker Limited, the issue manager, has urged the investors to contact the collection centers where they had duly applied for the IPO.

As per the IPO allotment on May 23, those who had applied for up to 630 units or Rs 63,000 have been placed under lottery, which means that all the retail investors have been placed under lottery.

It may be noted that the development bank had started distributing the allotment advice and refund the non-allottees on May 30.

The IPO floated from April 11 to April 16 had been oversubscribed by a little more than 60 times, according to the issue manager, Growmore Merchant Banking Limited.

There were a little more than 1,000 applicants from both the retail and institutional investors.

Since the IPO was oversubscribed by 60 times, it was allotted at a flat rate of 1.53 percent.

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

This IPO had attracted 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.