The issue managers handling the Initial Public Offering (IPO) of Pashupati Development Bank (PDB) have failed to deposit the money collected during the recently closed IPO at the central bank within the stipulated time.
A knowledgeable source told the Post that NIDC Capital Markets and Nepal Finance and Saving Company (NFSC), the issue managers, have missed the deadline. “They should have deposited it by August 24. We have not been informed about the cause of the delay,” said a Securities Board of Nepal (SEBON) official.
According to sources, the issue managers have collected Rs 1.7 billion from the share applicants, more than 20 times the value of the shares offered.
NFSC acting CEO Sudhindra Pradhan admitted that they were running late and promised to deposit the money soon. “We have been receiving money from our collection centers, and we hope to collect and deposit the entire amount at Nepal Rastra Bank very soon,” he added. PDB, a category B development bank, recently made its IPO for 800,000 shares worth Rs 80 million to the general public. The IPO lasted from August 12-18. SEBON directives require the entire amount collected during an IPO to be deposited into a separate account at the central bank within five days after the offering closes.
In order to check possible use of paper money with the active participation of financial institutions, SEBON holds such accounts for six days.
Source: eKantipur
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Sunday, August 31, 2008
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