Nepal Stock News: Chautari Laghubitta IPO Allotment Results - Only 56,070 Lucky Applicants Likely Allotted 10 Units !

Chautari Laghubitta Bittiya Sanstha Limited (CHAUTARI) has successfully concluded its initial public offer (IPO) noon, Friday 14th December 2018 (28th Mangsir 2075). The company had floated its IPO issues of 0.6 million unit shares worth of Rs 60 million at the face value of Rs 100 per unit share to the general public for four days, starting from Wednesday 5th December 2018 (2nd Mangsir 2075) lasting till Sunday 9th December 2018 (23rd Mangsir 2075) just early this week.

According to NIBL Ace Capital Ltd., its issue manager, the IPO has been oversubscribed by about 30.59 times with an overwhelming public response, attracting over 273,192 applications worth Rs 1.71 billions (Rs 1.71 arabs) demanding 1.71 million unit shares till the final day of the issue. Of the total applications, 475 rejected due to errors and only 56,070 lucky applicants are allocated the mandatory 10 unit shares through the lottery system, leaving the remaining a larger number of more than 2,17,122 applicants empty handed.

Of the total 600,000 unit shares, the company has set aside 9,300 unit shares (0.5%) for its employees and 30,000 unit shares (5%) for the existing mutual fund companies.

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The company is floating the remaining 5,60,700 unit shares (94.5%) to the general public alone. The provision of application for the interested public investors was a minimum of 50 and a maximum of 3,000 unit shares.

The company has a current paid-up capital of Rs 126 million (Rs 12.6 crores) that has been raised from its promoters. After the issuance of this IPO, Rs 60 million (Rs 6.0 crores) will be added to reach Rs 186 million ( Rs 18.6 crores). In its first quarter (Q1) of the current fiscal year 2075/76, the microfinance has earned a net profit of Rs 3.74 million (Rs 37.48 lakhs) with Rs 12.6 million (Rs 1.26 crores) in its reserve and bad debt ratio of 0.43%.

In the prospectus published for this IPO issue, the company has mentioned its projection to earn the net profit of Rs 37.36 million (Rs 3.73 crores) in the current fiscal year 2075/76, Rs 48.88 million (Rs 4.68 crores) in 2076/77 and Rs 57.94 million (Rs 5.79 crores) in 2077/78. Similarly, it has projected to make the net worth per share of Rs 128.07 in the current fiscal year 2075/76, Rs 153.32 in the next fiscal year 2076/77 and Rs 184.47 in the fiscal year 2077/78. Also, it has projected to make its earning per share (EPS) of Rs 20.09 in the current fiscal year 2075/76 Rs 25.21 in the fiscal year 2076/77 and Rs 31.14 in the fiscal year 2077/78.

Check the link below to read/download the IPO ALLOTMENT MODEL:

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Incorporated in 23rd March 2015 as 10 districts level class D microfinance institution, CHAUTARI started its commercial operation from 25th November 2015. As of mid-April 2018, the company had operations through 34 branches over its 10 licensed districts. The microfinance has recently been upgraded to 15 districts level status on 23rd May 2018.

Check the link below to read/download the IPO ISSUE OPEN NOTICE: