Suryodaya Laghubitta IPO allotment concludes thru lottery to all; Out of 1.09 lakh applicants only 10,920 allotted shares

Suryodaya Laghubitta Bittiya Sanstha Limited has concluded its Initial Public Offering (IPO) allotment today at Yellow Pagoda Hotel located at Jamal, Kathmandu at 3:00 PM. Allotment for small investors who had applied from Rs 5,000 or 50 units to 50, 000 or 500 units shares was allotted 0.39% which means all the category fall under lottery. Allotment for big investors who had applied from Rs 51,000 or 510 units shares was allotted 0.24% which means all the category fall under lottery. Since the allotment took place through lottery, allottee will get  minimum of 10 unit shares. Suryodaya Laghubitta had floated its Initial Public Offering (IPO) of 1, 20,000 unit shares worth Rs 1.20 crore from Bhadra 12, 2073 till Bhadra 15, 2073. Interested investors were required to apply for a minimum of 50 units of share and they can apply for up to 1,000 units of share. Global IME Capital Limited has been appointed as the issue manager for the IPO. Of the total 1, 09,200 unit shares set aside for general public. 40% or 43,680 units shares, were put aside for retail investors and 60% or 65,520 shares, under “other investor” category. Retail investors applied for a total of 1,11,93,790 unit shares and those in the others category demanded 2,67,46,510 units shares. The shares set aside for retail investors were oversubscribed by 256.27 times and those set aside under other category were oversubscribed by 408.22 times. Of the total 1, 09,714 applicant’s only 10,920 investors got the shares including 8 mutual fund and 106 staffs. There were only 1,832 invalid applicants. The microfinance company plans to raise Rs 1.20 crore through the offer. After the IPO, it’s paid up will reach Rs 4 crore from the current Rs 2.80 crore. Its authorized capital stands at Rs 8 crore. After the IPO, the promoter-public ratio of the company will be 70 % to 30%. The head office of the company is located at Putali Bazar of Syangja whereas its working areas are Baglung, Myagdi, Parbat, Syangja, Manang, Lamjung, Mustang, Gulmi, Pyuthan and Rolpa. Suryodaya Laghubitta has earned net profit of Rs 1.49 crore in the fourth quarter of the last fiscal year 2072/73. The microfinance company has paid up capital of Rs 2.8 crore.