April 28, 2022 | Investopaper
IPO Allotment Of CYC Nepal Laghubitta
The IPO shares of CYC Nepal Laghubitta Bittiya Sanstha Limited has been allotted on Thursday. Global IME Capital Limited, the issue and sales manager, made the final allotment through lottery.
According the issue and sales manager, about 22,05,633 people have applied for the company’s IPO. Of these, 3,272 applications were rejected.
Out of the remaining 22,02,361 eligible applicants, 36,948 applicants were allotted shares at the rate of 10 shares each. Likewise, 8 applicants (who applied for 20 shares) received one additional share each.
The IPO result of CYC Nepal Laghubitta can be viewed on the link below:
IPO Of CYC Nepal Laghubitta
CYC Nepal Laghubitta Bittiya Sanstha Limited sold the shares to the general public (IPO) from Baisakh 2, 2079 BS. Due to the full subscription of shares, the issue was closed on Baisakh 6, 2079 BS.
The company issued 3,95,336 shares in the public offering. At a par value of Rs 100, the IPO amounts to Rs 3.95 crores.
Out of the total public issue, 6,082 shares are reserved for the employees of the company. Likewise, 5 percent or 19,766 shares are allotted to the mutual fund schemes. Therefore, the general public could apply for the remaining 3,69,488 shares.
One could apply for a minimum of 10 shares and a maximum of 1,000 shares.
Securities Board Of Nepal (SEBON) granted the approval to the company for public issuance on Chaitra 9, 2078 BS. The company had submitted the application to the board on Ashwin 11, 2078 BS seeking permission for the pubic issue. Only after approval from the regulatory body, the company can sell the shares to the general public.
CARE Ratings Nepal Limited has provided rating of ‘CARE-NP BB- (Is)’ [Double B Minus (Issuer)] to the company. This indicates that the company has a moderate risk of default regarding timely servicing of financial obligations.
The company had appointed Global IME Capital Limited as the issue and sales manager. The agreement was signed by Managing Director Dolindra Prasad Sharma on behalf of the company and Deputy Chief Executive Officer Parag Bista on behalf of Global IME Capital Limited.
After the issue of IPO, the general public will possess 32.50 percent share in the company (if fully subscribed). Likewise, the promoters will own 67.50 percent shares.
About CYC Nepal Laghubitta
CYC Nepal Laghubitta Bittiya Sanstha Limited registered on Magh 28, 2075 BS [11 February 2019] as a ‘D’ class micro-financial institution licensed by Nepal Rastra Bank. It started formal microfinance operation on Chaitra 1, 2075 BS [15 March 2019]. The head office is located at Baglung Municipality-3, Baglung.
The company has already acquired Shaligram Laghubitta Bittiya Sanstha Limited. The special general meeting of the microfinance held on Jestha 14, 2078 BS [28 May 2021] had provided the approval for the acquisition. Likewise, Nepal Rastra Bank has also given final approval on Ashad 15, 2078 BS [29 June 2021]. The acquisition has taken place in the share swap ratio of 100:72.
As of Ashad’s end 2078 BS, CYC Nepal has a paid-up capital of Rs 8.21 crores. The microfinance has floated Rs 1.74 Arba as outstanding loans and advances. It is working in 16 districts of Nepal with 38 branch offices.
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