IPO Result Published- Swadeshi Laghubitta Bittiya Sanstha Limited

NMB Capital Limited, the issue manager for the IPO of Swadeshi Laghubitta Bittiya Sanstha Limited has concluded allotment of 3 lakh units IPO shares of the microfinance company today at NMB Capital Limited, Nagpokhari, Kathmandu at 8:30 AM.

Allotment for investors who had applied from Rs 5,000 (or 50 units) to Rs 1,12,000(or 1,120 units) were decided through lottery and those who got the shares through lottery were allotted 10 shares each. Remaining investors who had applied from Rs 1,13,000 (1,130 units) to Rs 1,50,000 (or 1,500 units) were allotted 0.835% on pro-rata basis. Applicants who had applied for 1,500 units got 12 units on pro-rata basis.

Out of the total 90,816 valid applicants, only 25,030 got the shares. A total of 2,73,000 unit shares were allotted to the general public. Staffs were allotted 12,000 units shares and the mutual funds were allotted 15,000 units shares.

There were 1,206 invalid applicants.

Check your IPO Results now at this link below:

Sharesansar

How to apply for Standard Chartered Bank’s FPO using ASBA (Step-by-Step Process)

46 banks and financial institutions have been approved by SEBON to accept applications for public issues (IPO/FPO) through ASBA (Applications Supported by Blocked Amount) process. Investors interested in applying in the FPO of Standard Chartered Bank Nepal Limited (SCB) can provide application using the ASBA form from 2,060 branches of these ASBA-approved banks from 73 districts around Nepal.

Here is a step-by-step process to apply for the Standard Chartered FPO using the ASBA system:

The application forms can be collected from any branch of the ASBA-approved bank. A sample filled-up form for ASBA application process for account holders of NIC Asia Bank has been shown below:

The ASBA form needs to be filled up with the applicants details, their bank account number maintained in the respective bank, their demat account number, and the details of how many shares they wish to apply for.

This form is to be submitted to the ASBA-approved branch of the bank. The bank then withholds the applied money in the applicant’s bank account, and provides the slip (ardhakatti) on the bottom from the ASBA form.

Applicants do not need to fill up another application form, or visit other collection centers to complete the application process. The same ASBA form acts as the application for the IPO.

The bank will charge a maximum of Rs 100 per application form for application amount under Rs 50,000; and a maximum of Rs 250 per application form for above Rs 50,000. The ASBA charge varies with the bank.

Advantages of ASBA Process:

• No need to carry cash or cheque
• Interest of the blocked amount will still be accrued in the same bank account of the applicant
• Only the allotted amount will be debited from the bank account after allotment
• No need to stay in line for hours to submit application or collect refund

Disadvantages of ASBA Process:

• Applicants need to pay a charge of Rs 100 – Rs 250 per application form to their bank

ASBA system has not been made compulsory yet and its benefit cannot be realized until every application goes through the ASBA process. However, applicants will be able to save a lot of time during the application process.

List of ASBA-approved banks and finance companies:

Source: sharesansar

How Much to Bid for Agriculture Bank (ADBL) in Auction?

Agricultural Development Bank Limited (ADBL) had issued right shares in the ratio 2:1 from Kartik 3 to Mangsir 7, 2073. In this issue period, 1 in 5 shares was not subscribed by the shareholders. ADBL is auctioning these unsold 19,68,575 units right shares to the general public at a premium price. The main question here lies: how much to bid in the ADBL auction?

At more than 19.68 lakh units shares worth more than Rs 19.68 crore in paid up value, this is the largest auction of unclaimed right shares of any company in Nepal. If the recent trend in cutoff prices of unclaimed right shares is taken into account, ADBL is expected to earn a good Rs 40-50 crores+ in premium.

Basis for bidding on unclaimed right shares

Investors interested in acquiring unclaimed shares normally should bid less than the market price. While there are some who might bid above the current market price, sensible investors always bid less than the market price. The logic here is simple: why spend more money in auction when you can get the same number of shares in the stock market for a lower price?

What does the cutoff price trend show?

Bidders typically look at the market price on the second last day of the auction when establishing base for the bid amount per share. Trend shows that the cutoff price is normally 10-20% less than the market price on the last day.

Let’s take a look at the recent auctions:

Cutoff price for development banks are far lower than for commercial banks. This means that interested bidders might get away with bidding more than 20% lower than the last closing price. The highest difference between market price and cutoff price for a commercial bank was for Prime Commercial Bank at 10.66%.

When Machapuchchhre Bank Limited (MBL) auctioned its 2,33,983.79 units ordinary right share to the general public, its cut off stood at Rs 525. The last trading price of Machapuchchhre Bank, a day before the bid opening day stood at Rs 560.

Likewise, Laxmi Bank Limited (LBL) had auctioned its 186,462 units ordinary right shares to the general public. The cut off price for the auction was set at Rs. 477.60 whereas the last trading price, a day before the bid opening day stood at Rs 517. When Sunrise Bank Limited (SRBL) auctioned its 1,66,248 units ordinary shares, the cut off price stood at Rs 426. The last trading price of shares of Sunrise Bank, a day before the bid opening was at Rs 452.

Less than 10% difference between the cutoff price and last traded price is seen in case of commercial banks.

Will the number of shares and maximum limit make a difference?

ADBL is auctioning 19.68 lakh units shares. In a sense, this can be seen as a mini-IPO or mini-FPO. Further, maximum cap of 10,000 units per application has been set for the auction. In the earlier week, the price of ADBL stock was also declining.

How much to bid?

The auction closes on Falgun 12 (February 23, 2017). It will be sensible to bid around 10-15% less than the last traded price of ADBL on Falgun 11. For example, if the closing price of ADBL on Falgun 11 will be Rs 450, it is recommended to bid around Rs 380 to Rs 400. Similarly, if the closing price of ADBL on Falgun 11 will be Rs 400, we can bid around Rs 340 to Rs 360.

Source: sharesansar