IPO Allotment of Kasthamandap

 Kasthamandap Development Bank Limited has allotted its initial public offering today (19 January 2010). The 'B' grade development bank had issued 960,000 units of share to public at face value of Rs. 100 from 17 to 20 November, 2009 (2066 Mangsir 2 to 5). At the 60 days of IPO closing, Kasthamandap has allotted its share to 29206 applicants excluding its employees.
According to SEBON provision on IPO allotment, there is minimum of 40 days and maximum of 70 days to allot the public issue after the closing date. Companies have to allot within 40 days after IPO closing if the number of application is less than 100000. Likewise, if application is between 100000-200000 allotment within 50 days, 200000-300000 within 60 days and if the number of application exceeds 300000, maximum days of allotment will be 70 days.

As per the SEBON rule, Kasthamandap allotted its IPO within 60 days as it had total number of applicants of 2,30,188 including 101 staffs and 364 invalid applicants. Likewise, the demand of shares at IPO was 4,77,27,597 units by all the applicants. However, only 29307 applicants (including 101 staffs) entitled to be the shareholder of the development bank holding total units of 960000 (including 38400 for staffs).