Have you ever wondered which companies have the Highest IPO Return in Nepal? You might be aware that an IPO is offered at a low low price of 100/unit to the general public and by the time of listing usually the price is seen to be hiked by a good percentage.
The rise of Digital wallets in Nepal has also boosted the Share Market as you can easily make transactions through your mobile phone.
- Highest IPO Return in Nepal 2022
- 6. Rastra Utthan Laghubitta Bittiya Sanstha Ltd (RULB) 1,219.50%
- 5. Chandragiri Hills Limited (CGH) 1,225.00%
- 4. Manushi Laghubitta Bittiya Sanstha Limited (MLBS) 1,230.10%
- 3. Swabhimaan Laghubitta Bittiya Sanstha Limited (SMFBS) 1,656.10%
- 2. Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLB) 3,095.00%
- 1. Mahila Laghubitta Bittiya Sanstha (MLBSL) 3,460.00%
- Purpose of Initial Public Offering in Nepal (IPO)?
Highest IPO Return in Nepal 2022
I’ve listed some of the companies which have above 1000% increase overall. These are data as of 3rd April 2022.
Note Basic Knowledge for the Terms I’ve used below.
- Total Listed Units: This is the total shares the company has including the public and promoters.
- Listed Value: Value of shares at the time of listing in NEPSE
- Current Value: Current Price as of 3rd April 2022 / 20 Chaitra 2078
- Overall: Rise in Value in Percentage from the beginning
6. Rastra Utthan Laghubitta Bittiya Sanstha Ltd (RULB) 1,219.50%
A national-level ‘D’ class microfinance company headquarter base is in Sanga, Banepa -13, Kabhre Palanchowk, 20 k.m. east of Kathmandu. Currently operating in 7 provisions 39 zones and has 94 branches all over Nepal.
|Total Listed Units||2,600,000.00 units|
|Current Value||Rs. 1319.50|
5. Chandragiri Hills Limited (CGH) 1,225.00%
A Hotel & Tourism based sector company with listed 15,340,910.00 units shares and has a Total Paid Up Value of around Rs. 1,534,091,000.00.
An article in Sharesansar suggested a total of 12,51,938 Applicants applied for the IPO and it was oversubscribed by 17.5 times.
Later lucky 1,39,602 investors got 10 units each and the remaining 10,71,513 applicants returned empty hands. CGH offered a 25% discount on the cable car to those who applied for their IPO. According to SEBON CGH is an overvalued company.
Promoter holds 88% while the General (10%) and remaining will hold 2% and the final paid-up capital post IPO issue is Rs 1.534 Arba. Sharesansar’s full report here.
|Listed Shares (General Public)||15,34,091 units (10%)|
|Local Public||3,06,819 units (2%)|
|Current Value||Rs. 1325.00|
4. Manushi Laghubitta Bittiya Sanstha Limited (MLBS) 1,230.10%
The hype was unbelievable for this microfinance as Oversubscribtion on the first day itself was about 21.43 times, 48.21 on the second day, and 65.229 on the third day. On the final day, there were a total of 18 lakhs investors trying to get shares from MLBS.
So, a total of 23,54,784 valid applicants had applied for a total of 2,95,74,750 units which means the IPO was oversubscribed 80.23 times. 1 out of 80 people will get a share in this company.
Finally, a total of 36,859 investors got only 10 units each, and the remaining 23,17,925 applicants were left empty hands.
The company set aside 0.5% which is 5,469 units for the employees, 5% for mutual funds, and the remaining 3,68,593 units for the public.
|Total Listed Units||3,93,750 units|
|Listed Value||Rs. 397.50|
|Current Value||Rs. 1330.10|
3. Swabhimaan Laghubitta Bittiya Sanstha Limited (SMFBS) 1,656.10%
A Microfinance company from Rupandehi, Nepal SMFBS’s IPO was oversubscribed by more than 33 times. A total of 18,558 applicants were allotted 10 units of shares each via lottery and the remaining 3,08,928 applicants have to return empty hand with nothing. Also, 7 applicants got 1 unit each.
the company has issued 1,98,610 units of ordinary shares worth Rs 1.98 crore to the general public of that 3093 units were secured for the employees and 9,930 units have been allotted for the mutual funds. The remaining 1,85,587 units are for the general public.
|IPO||Jestha 5, 2076|
|Total Listed Units||618,610 Units|
|Listed Value||Rs. 91.84 – Rs. 275.52|
2. Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLB) 3,095.00%
JBLB a microfinance company goes public. For the general public like you and me, the company Jeevan Bikas Laghubitta Bittiya Sanstha Limited has allotted a total of 18lakh 48 thousand 15 units/shares of the company while they had secured 30,420 units for their workers or employees of the company and lastly 98,865 for Mutual Funds.
So a total of 1,84,801 applicants were allotted 10 units via lottery and about five lucky applicants got 1 unit extra. The remaining 18,33,507 applicants got nothing but a refund. According to reports 20lakh 18 thousand 308 valid applicants applied for this IPO.
Promoters hold 67.50 % while the Public has 32.50% of the JBLB’s shares.
- General Public: 1848015 Units
- Employees: 30,420 Units
- Mutual Funds: 98,865 Units
JBLB’s price has even crossed above RS. 5000/unit in the past. At the time of writing its price is around Rs. 3195.
|Total Listed Units||60,84,000 units|
|General Public||18,48,015 units|
|Listed Value||Rs. 989.10|
|Current Value||Rs. 3195.00|
1. Mahila Laghubitta Bittiya Sanstha (MLBSL) 3,460.00%
Another Microfinance company and probably the best investment opportunity people of Nepal have got Mahila Laghubitta Bittiya Sanstha. This tops the list for Best IPO return in Nepal for 2022.
Also known as MLBSL currently tops the list. With total listed shares of 1,475,000.00 units and a total paid-up value of Rs. 147,500,000.00.
After the issuance of the Initial Public Offering of 4 lakh shares to the general public which is worth 4 crores. Now, promoters hold 60% shares and the public has 40% paid-up capital to Rs 10 crore.
A minimum of 10 units and a maximum of 1000 units were allowed but only lucky 37,500 applicants were allotted 10 units which are about 3 lakh 75 thousand shares. The remaining 25 thousand shares are secured for employees of the company and in Mutual Funds.
- General Public: 3,75,000 units
- Employees: 5000 unites (0.5%)
- Mutual Funds: 20,000 units (5%)
|Listed Shares||1,475,000.00 units|
|General Public||4,00,000 units|
|Listed Value||Rs. 446.00|
|Current Value||Rs. 3560.00|
Purpose of Initial Public Offering in Nepal (IPO)?
IPO stands for Initial Public Offering in this process a privately owned company goes public, which simply means you and I can own a small part of the company with as low as Rs. 1000 in the case of Nepal.
An IPO is essentially a fundraising method for companies basically, the company sells its shares to the general public for the first time directly. After successfully selling the IPO its shares are traded on the stock market, NEPSE in the case of Nepal.
You can know more about owning a part of a company or buying an IPO in Nepal through this article, visit here.
So, why do companies even sell their shares to the public? everyone has their reason as some of which might be listed below.
- Rise Capital for future projects
- Providing Liquidity
- Advantages of High Valuation
- Paying Debts
These are some of the companies that have the highest IPO return in Nepal. Do you know that banks charge fees to apply for IPO? read this article to know more.
Note: This article (IPO return in Nepal) is written to provide general knowledge by Individual collecting information from different independent sources some are listed below. The article was written on the 3rd of April 2022 and by the time you are reading this, the prices and percentages will surely change which I have no control over.
Also, if some of the information is missed or mistaken please do suggest a correction in the comment section. Thank You!