SEOS allotment: 100% for up to 5,000 units; 58.97% for above; refund from July 28

ShareSansar, July 24:

Siddhartha Bank Limited has allotted the initial offering of its five-year closed end Siddhartha Equity Oriented Scheme (SEOS), which it had floated at a value of Rs 10 per unit on June 20.

According to officials with Siddhartha Capital Limited, the merchant banking arm of the bank which is managing the issue, the initial offering of SEOS has been allotted by cent percent to those who applied up to 5,000 units, and by 58.97 percent to those who applied more than 5,000 units.

The issue was oversubscribed by 1.3 times.

Following the allotment of the scheme, including 25 percent additional units, yesterday, the bank has stated that it will start refunding the non-allottees from July 28.

While floating the scheme of 8 crore units worth Rs 80 crore, 1.20 crore units had been set aside for the issuer itself.

Interested investors had buy at least 100 units and at the most 80 lakh unit before the issue closed on June 29.

Siddhartha Capital’s Chief Executive Officer Dhurba Timilsina further informed that SEOS will target 70 percent equity market, 25 percent bond market and only 5 percent liquidity management.

Asked why did they opt for an equity oriented scheme this time unlike their first scheme, Siddhartha Investment Growth Scheme-I or SIGS-I, he said that equity -oriented scheme was brought initially since the capital market is no longer undervalued and equity market is also growing.

SEOS, the second mutual scheme by the Siddhartha Bank, has received [ICRANP] AMC Quality 3 (AMCs) rating, which is very good while the issue manager itself has received ICRANP BBB, which is not bad at all.