Reliance Lotus Finance to refund FPO non allottee investors from today; Rs 46.28 crore returns to investor

Reliance Lotus Finance Limited (RLFL) is refunding excess money collected from investors from today (Magh 15, 2072). It had floated 5, 14,286 unit shares as part of its FPO shares. Reliance Lotus FPO had received a total of 6,571 applications, resulting in an oversubscription by 10 times. Among the total applicants only 6,570 applicants were allotted shares. The FPO had collected over Rs 51.42 crore from the investors. Now, the excess amount of Rs 46.28 crore will be refunded to the FPO investors. The company has urged non-allottee investors to visit their respective collection centers with receipt to collect their refund through account payee cheque. The non-allotees have to bring their receipt slip with a copy of citizenship or authorization letter to collect their payment slip. NCM Merchant Banking Limited is the issue manager. Investors who had applied from Rs 9000 or 90 units to Rs 50,000 or 500 units were allotted 13.2% on pro-rata basis. Investors who 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. 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. The Last traded price of RLFL was Rs 173 per unit as of January 14, 2016.