The IPO allotment of Muktinath Krishi Company Limited was successfully concluded today at the headquarters of the issue manager, NIMB Ace Capital Limited, located in Kathmandu.
Muktinath Krishi Company Limited had offered 11,48,000 units of IPO shares at a par value of Rs. 100 to the general public from the 8th to the 12th of Mangsir, 2080. Out of the total 14,00,000 units, 10% (1,40,000 units) were allocated to Nepalese citizens working abroad, 3% (42,000 units) were reserved for the company’s employees, and 5% (70,000 units) were set aside for mutual funds. The remaining 11,48,000 units were made available for the general public.
The IPO garnered significant interest, receiving applications from 12,74,567 valid applicants who collectively applied for 1,36,04,910 units. The oversubscription rate exceeded 11.85 times. In the allotment process, 1,14,800 applicants were allotted 10 units each through a lottery system, while the remaining 11,59,767 applicants did not receive any allotment. Mutual funds were allotted 70,000 units, and 42,000 units were allocated to the company’s employees. However, 4,300 applicants who applied for 59,880 units were disqualified.
The IPO result can be accessed through platforms such as CDSC IPO Result, MeroShare, and NIMB Ace Capital Limited.
ICRA Nepal has reaffirmed Muktinath Krishi Company Limited’s issuer rating at [ICRANP-IR] BB-, indicating a moderate risk of default regarding the timely servicing of financial obligations. Muktinath Krishi Company is affiliated with Muktinath Bikash Bank, established in 2075 as the first public agricultural company. The company aims to play a managerial role in the agricultural value chain, contributing to Nepal’s agricultural economy through campaigns like “Krishak sanga Muktinath” and “Upabhoktaa sanga Muktinath.” The company operates in over 70 districts, maintaining more than 200 distribution channels and Agricultural Resource Centers.