Naya Nepal Lagubitta IPO closes, oversubscribed by more than 16 times by day 3

ShareSansar, October 7:

The Initial Public Offering (IPO) of Naya Nepal Lagubitta Bikash Bank is closing today. It has already been oversubscribed by more than 16 times by the first three days of its issuance, according to NMB Capital, which is managing the IPO issue.

The microfinance development bank had floated 60,000 unit equity shares of face value Rs 100 each on October 3.

“As we more or less finish calculating the applications for the first three days, we have collected around Rs 10 crore, which is more than 16 times the equity we sought,” according an official at NMB Capital.

The IPO is likely to be oversubscribed by many more times as institutional investors usually apply on the last day.

Of the 60,000 units being floated in the market, 1,200 units are reserved for its staff and 3,000 units have already been allotted to the mutual funds.
None of the mutual funds had applied for the shares till the offer letter was issued.

The general public can bid for a minimum of 50 units to a maximum of 5,000 units.
As per its offer letter for the IPOs, Naya Nepal Lagubitta Bikash Bank has an authorized capital of Rs 4 crore, issued capital of Rs 2 crore and a paid-up capital of Rs 1.4 crore.

The company established five years back in Dhulikhel in Kavrepalanchowk district has further stated that once the IPO is issued, its paid-up capital will be on par with the issued capital.

It had posted a net profit of Rs 19 lakh and 95 thousand in the fiscal year 2068/69.