Sahara Bikas Bank IPO draws over Rs 11 crore in just two days

Mon, Jun 9, 2014 12:00 AM on IPO/FPO News,

ShareSansar, June9:

The Initial Public Offering (IPO) of Sahara Bikas Bank Limited worth Rs 60 lakh has drawn over Rs 11 crore  by Sunday, which means that it was oversubscribed by more than 18 times in just two days.

The class ‘B’ development bank based in Malangwa of Sarlahi district had floated the primary shares on June 6, and it is being closed on June 10.

“The apparent reason for the overwhelming demand for the IPO is the prospect of right shares the company is planning to float shortly,” says an official with Global IME Capital Limited, which is managing the IPO.

The applicants could apply for a minimum of 50 units and maximum of 5,000 units of the primary shares being floated at the face value of Rs 100 per unit.

Of the total 60,000 units of the primary shares issued, 3,000 units were earmarked for the mutual funds and another 1,200 were set aside for the bank staffers.

Sahara had got the approval from the Securities Board of Nepal (SEBON) on April 16 to float the IPO.

The development bank’s paid-up capital will rise to Rs 2 crore from the existing Rs 1.4 crore following the IPO.

The development bank has branches in Barahathawa, Bayalbas and Lalbandi of Sarlahi.

Sahara’s company secretary Ajit kumar Jha said that they are also planning to float at least 1:1 right share shortly after the IPO to further shore up the paid-up capital.