Kathmandu: The allotment for Shreenagar Agritech Industries’ Initial Public Offering (IPO) has been finalized, with shares distributed to a significant number of retail investors through a lottery system due to overwhelming demand.
The allotment process took place at the office of the company’s share issuance and sales manager, Nabil Investment Banking Limited.
The company had issued 2,510,493 IPO shares at a face value of Rs 100 each from October 12 to October 15.
A total of 1,898,333 individuals applied for 20,568,210 shares. Of these, 1,869,330 applications were approved, while 26,636 were rejected.
Oversubscription led to the use of a lottery system for allotment. As a result, 251,049 applicants received 10 shares each. The remaining 3 shares were redistributed among these allottees, with 3 additional applicants receiving one extra share each, totaling 11 shares.
This IPO marks a key milestone for Shreenagar Agritech Industries Limited, a Rupandehi-based company specializing in poultry, cattle, and fish feed production under brands like ‘Sunaulo’ and ‘Himdana,’ with an annual capacity of 135,780 metric tonnes. The public portion represents 20 percent of the company’s NPR 1.63 billion issued capital, following allocations to project-affected locals (1.63 lakh shares), Nepalis abroad (3.1 lakh shares), mutual funds (1.55 lakh shares), and employees (1.24 lakh shares).
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