Himalayan Bank’s Oversubscribed FPO Set for Allotment on Shrawan 13 Amid Procedural Delays

ShareSanskar | Shrawan 9, 2082

In a highly anticipated development for the Nepalese capital market, the allotment of Himalayan Bank Limited’s Further Public Offering (FPO) is now officially scheduled for Shrawan 13 (Tuesday). The announcement follows procedural delays stemming from unconfirmed applications by certain ASBA member banks, which postponed the initial allotment timeline.

Citizens Capital, the issue manager, confirmed that the pending confirmations are now being processed, paving the way for the pre-allotment phase to begin. According to regulatory mandates, a minimum two-day interval must be maintained between pre-allotment and final allotment. This compliance requirement has shifted the allotment process to the upcoming week.

The FPO witnessed staggering interest from retail investors, drawing applications from over 17 lakh individuals, nearly four times the available share quantity. However, due to the oversubscription, shares will be allotted through a lottery system. Only 9,25,046 applicants will receive shares, with 9 lucky individuals getting 11 units each, and the rest securing 10 units each.

The offering consisted of 92,50,469 shares priced at Rs. 157 per unit, a value that combines a par price of Rs. 100 and a premium of Rs. 57. The offering generated a total fund inflow of Rs. 1 arba 45 crore 23 lakh 23 thousand 633. Although the bank had initially proposed a rate of Rs. 169 per share, the Securities Board of Nepal (SEBON) approved the revised pricing on Ashar 22, allowing broader participation at a slightly more affordable rate.

With allotment probability standing at just 51.77%, investors now await the outcome of what has become one of the most heavily subscribed FPOs in Nepal’s financial history. All eyes are now on Shrawan 13, when the final allotment results will be unveiled.