After some interval Nepalese investors are provided with a opportunity to invest in IPO during the Lockdown. Jeevan Bikas Laghubitta Sanstha Limited is issuing IPO to General Public-.
Incorporated in August 2012 (in Office of Company Registrar), Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLBSL), started its operation from February 2019 as a licensed national level class D microfinance institution taking over the microfinance business being conducted by Jeevan Bikas Samaj (JBS), an NGO, established in September 1997 and operating as a financial intermediary from June 2002.
The company merged with Solve Laghubitta Bittiya Sanstha Limited and Garibi Nyunikaran Laghubitta Bittiya Sanstha Limited and commenced the joint operation from September 7, 2020, under the name Jeevan Bikas Laghubitta Bittiya Sanstha Limited. As of mid-January 2021, the major shareholders of JBLBSL include JBS, NGO (30%), Prabhu Capital Limited (13%), SR Hydro and Investment Private Limited (9%), Social Organization for Liberal Volunteers Engagement of Nepal - SOLVE; (7%), NIC Asia Bank (3%), Samudayik Mahila Bikas Kendra (SWDEC; ~1%). The registered and corporate office of JBLBSL is located at Katahari-2, Morang, Nepal.
About the issue of IPO of Jeevan Bikash Laghubitta Sanstha Limited
Jeevan Bikas Laghubitta Sanstha Limited is issuing 19,77,300 lakhs units ordinary shares worth Rs. 19.77 crores to the general public from Ashad 11 2078. The early closing date of this IPO issue is on Ashad 15, 2078. If the issue is not subscribed till Ashad 15, 2078 then the issue can be extended to Ashad 25, 2078.
Out of offered 19,77,300 units; 0.5% of issue capital i.e., 30,420 units have been allotted for the employees of the company, and 5% of the total offered to the general public i.e., 98,865 units have been allotted for the mutual funds. The remaining 1,848,015 units are for the general public.
Applications can be placed for a minimum of 10 units and a maximum of 1,000 units.
NMB Capital Limited has been appointed as the issue manager for the IPO issuance.
After the IPO issue, public holding will be 32.50% and promoters holding will be 67.50%.
Conclusion:
The total shares floated by Jeevan Bikas Laghubitta Bittiya Sanstha Limited is issuing 19,77,300 units, of which only 18,48,015 units are available to the general public after the allocation of shares to staff and mutual fund.
If we see the recently concluded IPO of previous issued IPO's, a total of more than 18 lakh applicants applied for the company IPO and we assume that the same or even more craze prevails in Jeevan Biikas Laghubitta Bittiya Sanstha's IPO too. Since the 10 kitta rule exists for IPO; 1,84,801 applicants will be lucky enough to get the shares of Jeevan Bikas Laghubitta Bittiya Sanstha Limited.
Hence, if the same number of applicants (or more) who applied for the previous IPO apply for this issue then there is a high probability of lottery for 10 units. Since the minimum unit is 10, it is advisable to apply only 10 units in the IPO issue of Jeevan Bikas Laghubitta Bittiya Sanstha Limited.
