NCM Merchant declines to provide data relating to allotment of FPO on privacy grounds

Reliance Lotus Finance Ltd. (RLFL) had floated its Further Public Offering (FPO) from Poush 5 to Poush 8, 2072. The FPO had collected Rs. 51.42 crore (Oversubscribed by 10 times).

The company had concluded its IPO allotment on Magh 10, 2072 at the premises of issue manager NCM Merchant Banking Limited.

After allotment of FPO or IPO ShareSansar maintains a searchable database of the allotted shares to the investors. In such database, investors can search the number of shares allotted to them by simply providing their first and last name. We were unable to put up such database for the FPO issue of RLFL as the issue manager, NCM Merchant Banking Limited, declined provides data relating to allotment of FPO on privacy grounds.

In the allotment model used by the issue manager, investors who had applied from Rs 9000 or 90 units to Rs. 50, 000 or 500 units were allotted 13.2%. Investors who had applied Rs 51,000 or 510 units and above were allotted 8.23 %. The investors who applied from 50 to 8 units got 10 units each. Every valid applicant got the share as there was no lottery.

Of the total 5,14,286 unit shares set aside for public, 40% or  205,714 units shares, were put aside for retail investors and 60% or 3,08,572 units shares, under “other investor” category.

Of the total 6571 applicants’ 6570 investors got the shares. There was only one invalid applicant.

At present promoter- public ratio is at 70% to 30%. After the FPO the finance might convert its 19% promoter share into public share making the promoter- public share 51% to 49% in the near future.