Raptibheri IPO over-subscription by 51 times

ShareSansar, Feb 10:

In what could be termed as a stunning Initial Public Offering (IPO) performance by a little known development bank, the maiden stock sale of RaptibheriBikas Bank has been oversubscribed by 51 times.

Raptibheri’s 5 crore IPO was oversubscribed 15 times on the third day itself.

According to an official with the issuing agency NMB Capital, the overwhelming response from the public to the offering was unexpected.

As per the market watchers, the response was a result of combination of factors such as high liquidity in the market and the pent up desire of the investors looking for safe investment option.

By the time all the data related to the IPO trickled in from all the collection centers, the total collection had reached 2 arba 37 crore and 23 lakh, the NMB official said.

Of the total 500,054 units of the shares being issued, 25,003 units had been earmarked for the mutual funds and another 10,001 for the bank staffers.

Raptibheri’s paid-up capital will rise to Rs 12.50 crore from the existing Rs 7.50 crore following the IPO. The development bank has head office in Nepalgunj (Banke district) and branches in Bardiya and Dang district.

The company EPS stands at Rs 10.64 and has Rs 1.78 crore in reserve fund as per the last fiscal year 2070/71 financial statement.