IPO Allotment of Rastra Utthan Laghubitta Concludes, Company Aims to Upgrade to Development Bank

The IPO allotment of Rastra Utthan Laghubitta Bittiya Sanstha Limited is concluded today at the premises of the issue manager NIBL Ace Capital Limited, Lazimpat. 

Rastra Utthan Laghubitta Bittiya Sanstha Limited had issued 8,50,000 units worth Rs 8.50 crore as Initial Public Offering to the general public from (Falgun 4-8, 2078). 

Out of the offered 8,50,000 units; 0.5% of the issued capital i.e. 13,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 42,500 units have been set aside for the mutual funds. The remaining 7,94,500 units are for the general public. 

The issue had received applications from 25,79,402 valid applicants who had applied for a total of 2,93,97,680 units. The issue was oversubscribed more than 37 times. 

As per the allotment module, a total of 79,450 applicants were allotted 10 units each via lottery, and the remaining 24,99,952 applicants were returned empty hands. 

A total of 13,000 units were allotted to the staff of the company and 42,500 units were allotted to mutual funds.

In total 5,859 applicants who applied for 69,530 units were disqualified.

The company's executive director thanked applicants for their vote of confidence. He said that the microfinance company has the ability and expertise to transition and operate as a Development Bank if the regulatory arrangement permits in the future.

Allotment Module

The IPO result can be accessed by CDSC IPO Result, NIBL Ace Capital, and MeroShare.

After the issuance of 8,50,000 units worth Rs 8.5 crore IPO shares the general public i.e 32.69% of total capital which will together raise its paid-up capital to Rs 26 crore and the promoter/public ratio will be 67.31:32.69. 

Rastra Utthan Laghubitta Bittiya Sanstha Limited started its operation in 2075 as a national level class D microfinance institution, licensed by the Nepal Rastra Bank. After its licensing, RULBSL took over the microfinance business of Nepal Rural Development Organization (NeRuDO), a financial intermediary NGO established in 2054.

As of today, the company has a presence in 39 districts with 94 total branches. Nepal Rural Development, Rastriya Banijiya Bank, Prabhu Bank are the major promoters of RULBSL.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to RULBSL. Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.