SEBON becoming more efficient in allowing flow of IPO and bonus shares; permission for right shares decreases while for bonus share increases manifold in first FY quarter

SEBON has published first quarterly report of the fiscal year 2075-76 outlining the total number of companies that applied with the board for its nod to issue shares into the market. As per the report, total of 25 institution have applied with the board to float IPO shares among which 3 are hydropower companies and 1 microfinance institution. These 4 institutions have already received approval from the board to float IPO worth of Rs 1.88 arba during the review period.

Out of 10 other companies which were in initial stage of their application with the board, 4 microfinance institutions are in state of receiving approval from the board to issue IPO shares after fulfilling the guidelines set for BFIs.

During the review period, 7 institutions have responded to the board thereby making necessary amendments as commented by the board while 3 of them have already been sent the latest set of comments asking them for their proper adjustment. SEBON also states that Garjang Valley Hydro, Laughing Buddha Hydro and Unique Hydro have all failed to respond to the board’s comment during the stipulated time.

The report also highlights that institutions seeking board’s permission to issue right shares have come down drastically as only 2 institutions so far have sought its permission for right shares whereas the date last year during the first quarter showed that 31 such institutions had sought permission for right share back then. The board has permitted right shares worth of Rs 16.90 crore in the review period while the figure was Rs 5.98 arba.

The board has also permitted 2 institutions to float debentures worth of Rs 3.83 arba during the current quarter which was a complete zero during the first quarter in the previous year.

In addition, the board has also registered bonus shares worth of Rs 5.76 arba belonging to 17 companies which is an increament of more than Rs 543%.