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Biggest IPO in nepal share market of 8 crore shares to be issued by Infrastructure Development Bank

Primary Market is of greater interest where a lot of IPOs are issued and Nepalese investor find primary the best option to begin their investment. Nepal Infrastructure Bank Limited had submitted an application in Security Board Of Nepal(SEBON) to issue IPO for 40% of its issued capital which amounts to 8 crore shares in the IPO worth of 8 Arba. The bank has already appointed CIT(Citizen Investment Trust) as the underwriter and NIBL Ace Capital as the issue manager of the Largest IPO in the history of Nepalese Share Market.

Since, the issue is approved, this will be the biggest IPO in the history of Nepal's capital market. The second AGM of the company had endorsed /approved the issuance of IPO. After the issuance of IPO , the company's paid-up capital will reach Rs. 20 Arba from the existing of Rs. 12 Arba.

Nepal Infrastructure development Bank  was established to serve and benefit from its investment in significant infrastructure projects of Nepal like Hydropower projects, road infrastructure, Solar energy, Tunnels, cable car, Amusement Parks, Recreation Centers, Medical College, Hospitals, Special Economic Area, Industrial Infrastructure, Urban Development, Information and Technology, Environment Friendly Projects, Solid Waste Management, Drinking Water and Irrigation etc. However, Nepal Infrastructure Bank's profit declined by 12.43% to Rs 18.01 crore in the first quarter of the fiscal year 2077/78. Its annualized earning per share stands at Rs 6, and net worth per share stands at Rs 115.

Background of The Company

Nepal Infrastructure Bank Limited (NIFRA) is established as a National Level Infrastructure Development Bank with the focused objective of accelerating the development of infrastructure of the nation. The Bank obtained the operating license from Nepal Rastra Bank (Central Bank) on February 11 2019 (2075/10/28 B.S.) and started its commercial operation from March 6 2019 (2075/11/22 B.S.). 

Being the first Infrastructure Development Bank of the nation, the bank aims to bridge the infrastructure financing gap by raising resources from domestic and international market through innovations like: establishing Equity, Debt, Mezzanine and Sector Fund Structures, Issuing On-shore and Off-shore Bonds and Debenture, etc. and applying such funds into economically viable infrastructure projects by adopting proven models of infrastructure financing like Public Private Partnership (BOOT/BOT), Viability Gap Funding (VGF), Hybrid Annuity Models (HAM) and Securitizing Assets. 

How Much Shares can you apply?

The Total units of shares to be issued as IPO is 8 Crore. As per the application received for Prabhu Life Insurance Company reached to 10 Lakhs Demat Acount. So, Every one is getting the minimum amount of Shares in IPO apart from that you can still apply for more shares amounting to 100 shares. 


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