The upcoming IPOs of the companies whose issue dates have been announced are Emerging Nepal Limited and Rastra Utthan Laghubitta Bittiya Sanstha Limited. These two companies have fixed the date to issue IPO for General Public.
Emerging Nepal limited is an investment company. Well, this public private company works towards developing infrastructure through equity participation in all economic sectors of Nepal. One of the stakeholders of Emerging Nepal Limited is Government of Nepal. On the other hand, Rastra Utthan Laghubitta Bittiya Sanstha Limited is a Microfinance company.
Meanwhile, Balephi Hydropower Limited will be issuing IPO for the project affected local residents of Sindhupalchowk district from Magh 29 to Falgun 12, 2078. Only the locals of the affected area will be eligible to apply for the issue for the time being. The company will later announce the IPO issuance date for the general public.
For the locals of the project affected area,
No. Of shares: 18,27,970 units
Rate: Rs 100 per share
Issuance Manager: Global IME
Issue Date: Magh 29 - Falgun 12
As of now, the above two companies have fixed their IPO issuance date for the general public. Jalpa Smaudayik Laghubitta Bittiya Sanstha Limited has recently issued IPO for General public. The other three remaining companies will soon be announcing the IPO issuance dates.
The three remaining companies which have been approved by SEBON to issue IPO for general public are
Nesdo Sambridha Laghubitta Bittiya Sanstha Limited
Sector:Microfinance
No. Of shares: 828,750 units
Issue Manager: Global IME Capital
Rate: Rs 100 per unit
Green ventures
No. Of share: 62,50,000 units
Sector: Hydropower
Issue Manager: Laxmi Capital
Rate: Rs 100 per unit
Balephi Hydropower Limited
No. Of shares: 36,55,940
Sector: Hydropower
Issue Manager: Global IME Capital
Rate: Rs 100 per unit
How many kittas should you apply in IPO?
Looking at the current scenario of the share market, the number of demat account holders have increased rapidly since the start of Lockdown, crossing the mark of 40 lakhs and counting. However, we have seen more than 20 lakhs people applying for every IPO recently.
With the limited number of shares issued by the company, many IPOs get oversubscribed even when people apply only for 10 kittas. So the company is forced to allocate only 10 kittas to only the limited lucky applicants out of all. So not everyone will be allocated to even 10 kittas as most of the IPOs are oversubscribed.
Well looking at the present context of Nepal, almost all IPOs are oversubscribed. So it is not worth it to apply for more than 10 kittas. On top of that, you will have to wait for the remaining amount evwn if you are allocated with 10 kittas. So your money will get stuck for, maybe a couple of weeks.
When to apply more than 10 Kittas in IPO?
Only when any company issues IPO in huge quantity which ensure that all the applicants will get more than 10 kittas. So do the math and find out how much IPO you are likely to be allocated with (if there is a chance).
On the other hand, when any company issues IPO for locals of the project affected area then the locals can apply for more quantities as there will be small number of applicants usually.
However, do check the issued quantity before you apply for any IPO and be sure about how many quantities to apply for. Jalpa Samudayik Laghubitta Bittiya Sanstha Limited- the recently issued IPO has more than 26 lakhs of applicants and is oversubscribed by 66.65 times.
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