Was "Bonus announcement" or "last day effect" the reason ? ; NMB Bank FPO ends being oversubscribed

The FPO issue of NMB Bank Limited (NMB) has gathered Rs 3.88 arba until the closing day from more than 70,650 candidates. The total issue was worth Rs 3.80 arba. The issue has been oversubscribed by around 2.10%. 

The issue which was expected to be undersubscribed had dramatically received hefty applications, thus making the issue over subscribed. Was this the last day effect or the bonus announcement that attracted the applicants, has been a matter of research. However, one cannot simply deny that the company is fundamentally strong and worth investing in. Though the price would have been a matter of question. 

Though a lot of voices against the FPO was raised in the social medias, the over-subscription has somewhat shown a growth of rationality among the investors. When asked to numerous investors, they were seen waiting for the last day to make the decision. Whereas a lot of them were in dilemma regarding the application, who were then motivated by the dividend declaration. Though the "Bonus announcement" strategy seems to have worked in case of NMB Bank, the effect of the same strategy in case of Nepal Bank FPO seems doubtful. The bank has already shown a hope for luring 32% dividend, a return less then this would definitely resent investors.  

The FPO of NMB Bank had begun from Jestha 30, 2075. The bank had issued 1,14,15,163 unit shares as further public offering to the overall population at a cost of Rs 333 for each offer. Applications have been gotten for around 1.16 crore units until the most recent day (i.e. yesterday). 

ICRA Nepal had doled out Grade 3 rating to the issue showing normal essentials. 

Citizen Investment Trust had been named as the issue director for the FPO issuance. 

After the capitalization of the FPO, paid-up capital will achieve Rs 7.60 arba with 51 and 49 rate shareholding of promoters and overall population separately. The bank has proposed 15% bonus shares to its investors worth Rs 1.14 arba after which the paid up capital of the bank will achieve Rs 8.74 arba thus, meeting the base capital necessity.