Nepal Seva IPO receives hefty applications; Only 8% of lucky applicants to be allotted with shares

As per the officials of the company, IPO of Nepal Seva Laghubitta received an application for 1,37,56,990 units from 2,08,131 applicants.The company had floated an IPO of 1.8 lakh units, out of which only 1,67,400 were available for general public. 

The company haven't yet finalized the date for allotment, but it is sure that only 16,740 applicants (among general public) will be allotted with 10 units each. This accounts for only 8% of the total applicants. At the time when BFIs are facing a problem of liquidity, IPOs collecting such number of applications is surprising in itself. 

Nepal Seva Laghubitta went for a public issue of 1.8 lakh units from baisakh 12th to Baisakh 16th, 2075. The company currently has a paid up capital of Rs 4.20 crores. The capital will rise to Rs 6 crores after the IPO. The microfinance had earned a meager net profit of Rs 13.99 thousand as of 2nd quater of this fy. It has a reserve of Rs 11.08 lakhs. The promoter public ratio will dilute to 70:30 after the public issue.