Matribhumi Bikas Bank distributing advice slip and refunding money of IPO

Matribhumi Bikas Bank Limited is distributing advice slip and refunding money to the non-allottees who had invested in its IPO.On December 27, Matribhumi’s IPO was allotted flatly at 19.33 percent. As the IPO was oversubscribed by five percent, those who applied up to 40 units were placed under the lottery.

There were 2,047 applicants, mostly from the locals of Sindhuli where the bank is based, according to the issue manager Civil Capital Markets. And there were 245 applications from big and institutional investors for 1.54 lakh unit equity shares.

The development bank had issued the IPO on November 21.It is also noteworthy is that 90 percent of those who have applied for the IPO are the locals of Sindhuli.Of the total equity shares issued, 3,080 units had been set aside for the bank’s staff and the remaining 1,50,920 units to the general public.

Now the primary shares will be listed for trading at NEPSE within two weeks, according to the officials concerned.

According to the unaudited fourth quarterly report of the development bank, it had posted a net profit of Rs 15.15 lakh in the last fiscal year 2069/70.Its paid-up capital stands at Rs 2.86 crore and the reserve at Rs 52.35 lakh.It mobilized Rs 23.37 crore in deposit and Rs 19.01 crore in loan in the previous quarter.Its NPL stands at 3.49 percent though its per share net worth stands at Rs 118.17.After the issuance of the IPO, the development bank’s paid-up capital will rise to Rs 4.4 crore. - SSN