Cosmos Development Bank IPO Public issue oversubscribed by 5.7 times

The Initial Public Offering (IPO) of Cosmos Development Bank Limited, which closed yesterday, has drawn around Rs 10 crore, which means that it has been oversubscribed by 5.7 times, according to its issue manager Civil Capital Market Limited.

The development bank, which has floated 1.75 lakh unit equity shares of face value Rs 100, coinciding with the Nagbeli’s IPO on December 8. There were more than 3,500 applications -- including both small and institutional investors-- for the IPO.

Altogether 3,500 units had been set aside for the bank’s staff and the rest to the general public.

The applicants could apply for at least 50 units and up to 10,000 units.

According to the unaudited 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. -sharesansarnews (SSN)