Nepalstocks, July 29. 2013
Manaslu Bikas Bank Limited, a three district development bank, has launched its IPO from today. The bank has floated 360,000 unit shares priced at Rs 100 per share.
Manaslu has set aside 7,200 unit shares for its employees, leaving 352,800 units for general public. Investors will have to file applications for a minimum of 50 units, while the limit for maximum shares has been set at 50,000 units.
The bank has appointed Growmore Merchant Bank as the issue manager for the IPO.
The bank’s paid up, currently at Rs 8.4 crore, is expected to reach Rs 12 crore after the IPO.
The bank has branches in Gorkha, Tanahu and Chitwan and provides services through its 4 branches and three extensions counters. It has installed one ATM at the main branch in Gorkha. Nepal Rastra Bank’s existing policy allows development banks with presence only in three districts to operate with a paid up capital of just Rs 10 crore.
However, as Manaslu had issued rights share worth Rs 1.4 crore earlier, the bank is now obligated to increase its paid up to more than the prescribed level so as to meet the mandatory ratio of 70 percent to 30 percent between the promoters and general public shares.
ICRA Nepal, the rating agency of Nepal, has graded the IPO as ‘[ICRANP] IPO Grade 4’, a below average rating.
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