Naya Nepal Lagubitta IPO oversubscribed by more than 2 times on the first day

The Initial Public Offering (IPO) of Naya Nepal Lagubitta Bikash Bank was oversubscribed by more than two times in the first day of its issuance.

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

“On the first day itself, we collected applications for 1.31 lakh unit shares, which is more than double the quantity we sought,” according an official at NMB Capital, which is managing the IPO issue.

Though the issue manager is still calculating the applications filed on the second day, Friday, share analysts say that the IPO will be oversubscribed by more than three times by the end of the day.

The issue closes on October 7.

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 have applied for the shares till the offer letter was issued.

The general public can bid for a minimum of 50 units to a maximum of 5,000 units.
As per its offer letter for the IPOs, 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.
-sharesansar