Kathmandu, December 10, 2013
Nagbeli Laghubitta Bikas Bank Limted, which has floated the Initial Public Offer (IPO) of 42,900 unit equity shares of Rs 100 face value from December 8, is already oversubscribed by more than 19 times.
“In the first two days alone the IPO has drawn Rs 8.3 crore,” says an official with NMB Capital Market Limited, the issue manager of the micro-finance development bank. “It is likely to be oversubscribed by around 150 times if the trend continues.”
Altogether 858 units have been set aside for the bank’s staff and 2,145 units to the mutual funds and the rest to the general public.
The IPO closes on December 11.
The applicants must apply for at least 50 units and up to 5,000 units.
The micro-finance development bank based in Birtamod of Jhapa district has paid-up capital of Rs 1 crore 10 thousand, and its paid-up capital will rise to Rs 1.43 crore after the issuance of the IPO.
The bank’s promoters have 70 percent holding in the company as of now. As the end of the last fiscal year 2069/70, its EPS (annualized) stood at Rs 34.54, and its net worth per share at Rs 144.84.
Given the overwhelming response to the IPO issued by four microfinance development banks – Sana kisan, RMDC, Kalika and Naya Nepal — earlier this year as well as the fact that Nagbeli has issued only 42,900 units of equity shares, its IPO is most likely to be oversubscribed hugely.
‘There is no shortage of Nagbeli IPO forms’
Meanwhile, NMB Capital Market officials have refuted some media reports and rumor in the market that there is an acute shortage of the IPO application forms of Nagbeli.
The micro-finance development bank based in Birtamod of Jhapa district has paid-up capital of Rs 1 crore 10 thousand, and its paid-up capital will rise to Rs 1.43 crore after the issuance of the IPO.
The bank’s promoters have 70 percent holding in the company as of now. As the end of the last fiscal year 2069/70, its EPS (annualized) stood at Rs 34.54, and its net worth per share at Rs 144.84.
Given the overwhelming response to the IPO issued by four microfinance development banks – Sana kisan, RMDC, Kalika and Naya Nepal — earlier this year as well as the fact that Nagbeli has issued only 42,900 units of equity shares, its IPO is most likely to be oversubscribed hugely.
‘There is no shortage of Nagbeli IPO forms’
Meanwhile, NMB Capital Market officials have refuted some media reports and rumor in the market that there is an acute shortage of the IPO application forms of Nagbeli.
“There is no shortage of IPO forms,” said one of the officers. “We don’t know why some media and other groups are spreading this baseless rumor.”
He further informed that around 10,000 forms are still available at NMB Capital’s office at Babarmahal.
Likewise, Cosmos Development Bank Limited, which has floated its IPO of 1.75 lakh unit equity shares of face value Rs 100, coinciding with the Nagbeli’s IPO, has drawn more than Rs 1.5 crore in the first two days of the issuance.
“We have received more than Rs 1.5 crore in the first two days,” says an official with Civil Capital Market Limited, the issue manager. “Going by this trend, we can predict that the IPO can draw something around Rs 6 crore, i.e. it is likely to be oversubscribed by around four times.”
Altogether 3,500 units have been set aside for the bank’s staff and the rest to the general public.
The applicants must apply for at least 50 units and up to 10,000 units.
According to the fourth quarterly report of the development bank based in Gorkha, it had registered a net profit of Rs 2.39 in the first quarter of the current fiscal year compared to 152,640 in the corresponding quarter.
Its paid-up capital stands at Rs 2.62 crore and it has a negative reserve of Rs 46.86 lakh as its total loan loss provision to total NPL is as high as 158.93 percent.
Nonetheless, its NPL stands at 0.74 percent. After the issuance of the IPO, the development bank’s paid-up capital will rise to Rs 4.37 crore.
Source: sharesansar
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