Kathmandu: Himalayan Bank Limited has successfully completed the allotment process for its Further Public Offering (FPO) on Tuesday through a lottery system at its Kamaladi-based headquarters.
The bank had called for applications for 925,469 unit shares at Rs 157 per share on 15 July.
The issue was heavily oversubscribed, receiving applications for 4.96 million shares against the offered 925,469 units – exceeding demand by over five times with 170,427 applicants.
Following regulatory procedures, the bank allotted shares through a computerized lottery system. Under this process 925,046 applicants received the minimum allotment of 10 shares each. Nine applicants who had applied for 11-20 shares were allotted 11 shares each.
The FPO was issued to comply with the Banks and Financial Institutions Act, 2016, which mandates that BFIs must float at least 30 percent of their total issued capital to the general public. Himalayan Bank’s FPO aligns with this requirement to enhance public shareholding.
The oversubscription reflects strong investor confidence in the bank’s growth prospects. Analysts suggest the successful FPO will bolster the bank’s capital base, enabling expanded financial services.
The allotted shares will be credited to applicants’ demat accounts shortly, while unallotted funds will be refunded as per SEBON guidelines.
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