December 5, 2023 | Investopaper
IPO Allotment Of Muktinath Krishi Company Limited
NIMB Ace Capital Limited, the issue manager for the initial public offering (IPO) of Muktinath Krishi Company Limited, has concluded the IPO allotment process on Monday.
After the allotment, 1,14,800 applicants have received 10 shares each through lottery.
A total of 12,74,567 valid applicants had subscribed for the shares. With the allotment, more than 11.59 lakh applicants were left empty-handed.
To view the IPO result of Muktinath Krishi Company Limited, click the link below:
Second Phase: IPO To General Public
After issuing shares to the foreign employed Nepalis in the first phase, Muktinath Krishi Company Limited had sold shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public was open from Mangsir 8, 2080 BS.
The company had issued 11,48,000 shares in the second phase of the IPO.
70,000 shares were allotted to the mutual fund schemes while 42,000 shares were reserved for the employees of the company.
Due to over-subscription of shares, the IPO to general public was closed on Mangsir 12, 2080 BS.
One could apply for a minimum of 10 shares and a maximum of 1,000 shares.
Credit rating company ICRA Nepal had given the company Issuer Rating [ICRA NP BB-]. This indicates that there is moderate risk to the company’s ability to meet its financial obligations.
First Phase: IPO To Foreign-Employed Nepalis
In the first phase of the IPO, the company had sold 1,40,000 shares to the foreign-employed Nepalis (10% of general public’s quota) from Karthik 10, 2080 BS. The IPO to foreign-employed Nepalis was closed on Karthik 24, 2080 BS.
Interested foreign-employed Nepalis could apply for a minimum of 10 shares and a maximum of 1,000 shares.
For this purpose, Securities Board Of Nepal (SEBON) had given the permission to the company on Ashwin 10, 2080 BS. The company had submitted the application to the board on Falgun 20, 2078 BS for public issuance. Only after the approval from the regulatory body SEBON, the company can sell the shares to the general public.
In total (including first and second phase), the company floated 14,00,000 shares in the public offering. At a par value of Rs 100, the IPO amounts to Rs. 14 crores.
For the issue of IPO, Muktinath Krishi Company had appointed NIMB Ace Capital Limited as the issue and sales manager. An agreement in this regard has already been inked between the company and NIMB Ace Capital.
Muktinath Krishi Company Ltd. was established in 2075 BS with an authorized capital of Rs 1 Arba and issued capital of Rs 70 crores. The company is planning to float 20 percent shares to the general public.
Muktinath Krishi Company Limited was established with the investment of Muktinath Bikas Bank along with more than 863 successful business people of Nepal. It has been working on the components of agricultural value chain to support the overall agricultural economy.