Naya Nepal Lagubitta IPO oversubscribed by more than 50 times

Kathmandu Oct 7, 2013

The Initial Public Offering (IPO) of Naya Nepal Lagubitta Bikash Bank, which closed yesterday, has been oversubscribed by more than 50 times, according to NMB Capital, which is managing the IPO issue.

The microfinance development bank had floated 60,000 unit equity shares of face value Rs 100 each on October 3.

“We have already collected Rs 25 crore, and we are yet to calculate the amount invested by eight institutional investors,” according an official at NMB Capital. “We expect to collect around Rs 30 to 32 crore at the end of the day. This means that the IPO is oversubscribed by more than 50 times.”

Of the 60,000 units being floated in the market, 1,200 units are reserved for its staff and 3,000 units have already been allotted to the mutual funds.

None of the mutual funds had applied for the shares till the offer letter was issued.

The general public could bid for a minimum of 50 units to a maximum of 5,000 units.

Naya Nepal Lagubitta Bikash Bank has an authorized capital of Rs 4 crore, issued capital of Rs 2 crore and a paid-up capital of Rs 1.4 crore.

The company established five years back in Dhulikhel in Kavrepalanchowk district has further stated that once the IPO is issued, its paid-up capital will be on par with the issued capital.

It had posted a net profit of Rs 19 lakh and 95 thousand in the fiscal year 2068/69.