The Dhaulagiri Laghubitta IPO has Concluded

The Dhaulagiri Laghubitta IPO has concluded. The IPO allotment process for Dhaulagiri Laghubitta was completed on Wednesday by Sunrise Capital Limited, the issue manager.

The allotment resulted in 30,929 applicants receiving 10 shares each. Five applicants received an additional share.

A total of 18,65,926 people applied for shares. There were 18,64,640 eligible applicants among whom 1,286 were disqualified. The allotment left more than 18.33 lakh applicants empty-handed.

Dhaulagiri Laghubitta Bittiya Sanstha Limited Successful IPO

Dhaulagiri Laghubitta Bittiya Sanstha Limited recently concluded its Initial Public Offering (IPO) with great success, selling a total of 3,31,000 shares starting from Shrawan 24, 2079 BS. This public offering, priced at a par value of Rs 100 per share, amounted to a significant Rs 3.31 crores.

Over-Subscription and Closing Date

Due to overwhelming demand and over-subscription of shares, the IPO had to be closed ahead of schedule, on Shrawan 29, 2079 BS.

Allocation Details

Out of the total public issue, 5 percent, equivalent to 16,550 shares, were allocated to mutual fund schemes. Additionally, 5,155 shares were reserved exclusively for the company’s employees. This left the general public with the opportunity to participate in the remaining 3,09,295 shares.

Share Application

Potential investors had the option to apply for a minimum of 10 shares and a maximum of 1,000 shares.

SEBON Approval

The Securities Board of Nepal (SEBON) granted the necessary permission for the public issuance on Ashad 24, 2079 BS. The company had originally submitted its application to SEBON on Falgun 23, 2078 BS, seeking approval to float these shares. It’s important to note that the company could only proceed with the IPO after receiving SEBON’s approval.

Key Players

Sunrise Capital Limited played a pivotal role as the issue and sales manager for the IPO. The public offering agreement was officially signed by Min Bahadur Bohara, the Chief Executive Officer of Dhaulagiri Laghubitta, and Bijay Lal Shrestha, CEO of Sunrise Capital. Additionally, Prabhu Capital Limited acted as the underwriter, with the agreement being signed by Min Bahadur Bohara, CEO of Dhaulagiri Laghubitta, and Dinesh Thakali, Managing Director of Prabhu Capital Limited.

Capital Enhancement

As of Ashad’s end in 2079 BS, Dhaulagiri Laghubitta Bittiya Sanstha Limited boasts a paid-up capital of Rs 7 crores. Following the successful sale of shares in the IPO, the company’s capital will witness a substantial increase to Rs 10.31 crores.

Ownership Structure Post-IPO

In the wake of the IPO, if fully subscribed, the general public will possess a significant 32.10 percent ownership stake in the company. Meanwhile, the promoters will retain the remaining 67.90 percent of the shares.

About Dhaulagiri Laghubitta Bittiya Sanstha Limited

Dhaulagiri Laghubitta Bittiya Sanstha Limited is a ‘D’ class financial institution, authorized and licensed by Nepal Rastra Bank. The company initiated its microfinance operations back in 2075 BS and has its head office situated in Baglung.

As of Chaitra’s end in 2078 BS, this microfinance institution operates through 44 branches, providing financial services to a substantial 35,086 members. Impressively, the company has disbursed loans and advances amounting to a noteworthy Rs 1.44 Arba.

Conclusion

The Initial Public Offering (IPO) of Dhaulagiri Laghubitta Bittiya Sanstha Limited has achieved remarkable success, attracting a significant number of applicants and selling a substantial number of shares. With Sunrise Capital Limited’s efficient allotment process, over 30,000 applicants received their shares, while the company’s capital significantly increased. This IPO signifies a positive step for the company, and as it moves forward, it continues to play a vital role in Nepal’s financial sector, serving a large number of members and contributing to the country’s economic growth.