Nepal Grameen Bikas Bank Limited (NGBBL) has been issuing 9,75,000 units FPO shares at face value i.e. at Rs 100 per share from Bhadra 27, 2074. The issue is closing tomorrow i.e. Bhadra 30, 2074. This particular Further Public Offering (FPO) is a perfect time for beginner investors to enter the stock market since the current situation makes it almost impossible to bear loss when invested in this FPO.
Following are the reasons why everyone must apply for the FPO of Nepal Grameen Bikas Bank:
- High chance of being allotted 10 units
Now that SEBON has made it mandatory for all applicants of IPO/FPO to be allotted a minimum of 10 units whenever possible, there is a good chance of being allotted 10 units. The bank is selling a total of 9,75,000 units and everyone is guaranteed 10 units if the number of applicants does not exceed 97,500. If we look at the past, around 1.50 lakh applicants can be expected which means that investors have more than 50% chance of being allotted.
- Extra documents unnecessary
There is no need to attach copies of citizenship certificate or the applicant’s photo to apply for the FPO. Every aspect of identification is verified through bank account and demat account.
Minimum Requirements:
- Absolute minimum investment necessary
Interested applicants can apply a minimum of Rs 5,000 (for 50 units), which is also the recommended amount to apply. Applying more than Rs 5,000 is possible but not recommended since it is almost sure every applicant will get 10 units max.
- Allotment within 1 month, listing within 2 months
For less than 2 lakh applicants, the allotment of shares must take place within 1 month. Likewise, the allotted shares must also be listed in NEPSE within 2 months. This means that the investors can sell the shares in profit within 3 months.
- No need to waste time by waiting in line
Gone are the days when applicants had to wait in line to apply for IPO/FPO. Applicants can visit their respective banks and apply easily through ASBA system. Currently,
55 BFIs (including all 28 commercial banks) with their 2,511 branches in all 75 districts can apply in this FPO by visiting their bank. Few banks have also facilitated applying in the FPO through online banking and SMS banking. NIC Asia Bank, Nepal Investment Bank, Citizens Bank Int’l, Nepal SBI Bank, Prabhu Bank, Tourism Development Bank, Siddhartha Bank, Shangri-La Development Bank, Sanima Bank are providing online ASBA system while NMB Bank is enabling its customers to apply through SMS means.
Also See:
How to apply for Nepal Grameen Bikas Bank FPO NIC Asia’s online banking service
Investors having accounts in other banks should visit their respective banks to fill up the ASBA form. A sample ASBA application for Nepal Grameen Bikas Bank’s FPO is shown below:
- Decent market price
Nepal Grameen Bikas Bank Limited is trading around Rs 700 in NEPSE at this time. If this price holds, allottees can make around Rs 600 per share profit. For every 10 units allotted, profit can be more than Rs 600. Even if the price falls to its 52-week low of Rs 439, that is a minimum profit of around Rs 3,400 within 3 months.
A good opportunity to enter stock market
Nepal Grameen Bikas Bank is a national-level microfinance development bank having one of the widest networks. Formed after merger of 5 small microfinance companies, NGBBL is promoted by Nepal Government itself along with Nepal Rastra Bank and major commercial banks like Nepal Bank, Rastriya Banijya Bank, Himalayan Bank, Nepal Bangladesh Bank, Standard Chartered Bank and Bank of Kathmandu Limited.
Nepal Grameen Bikas Bank earned net profit of Rs 16.14 crore up to the end of fourth quarter of FY 2073/74, registering an Earnings Per Share of Rs 28.96. There is almost ZERO possibility of investors facing loss in this particular FPO. So, beginners who are yet to enter stock market can begin their investment journey by applying in the FPO.
