Jyoti Bikas Bank primary issue oversubscribed

Primary shares of Jyoti Bikas Bank Ltd (JBBL) that has been oversubscribed by over six times to above Rs 1.78 billion closed yesterday evening.

"Some 121,000 applications came for the 2.92 million-unit of Jyoti Bikas Bank's Initial Public Offerings (IPOs)," according to the issue manager Ace Development Bank.

Jyoti Bikas Bank had floated 2.92 million-unit of ordinary shares to public at the face value of Rs 100 per unit on August 16. The development bank that has Rs 740 million of authorised capital will add Rs 740 million. The IPO is worth Rs 292 million. "The promoters have already paid their share of Rs 448 million," according to the bank.

Currently, 40 development banks' 88.49 million shares worth Rs 8.84 billion are listed at Nepse. Besides, 24 commercial banks, 62 finance companies and 19 insurance companiesare also listed on the stock exchange.

Development Banks' group is one of the key market propellers in the secondary market that is dominated by the financial institutions including commercial banks, development banks and finance companies apart from insurance companies. Their trading constitutes above 85 per cent of Nepse's overall business.