Kathmandu, April 2:

Gurkha Development Bank Ltd (GDBL) today allotted shares, which it had floated on January 12-18 for the public. The bank had floated 960,000 ordinary shares — which received a tremendous response from the market as its IPO was oversubscribed by 108 times — with a face value of Rs 100 each for public.

The bank received IPO applications worth Rs 10.38 billion against its demand for Rs 96 million, setting a new record of over subscription received so far in an IPO in Nepal. A total of 5,16,207 potential investors had applied for the GDBL’s shares totalling 102,031,630 units during a week-long period. But, only 30,012 including 34 bank employees have been successful to get shares through allotment.

Nepal Merchant Banking and Finance Ltd and NIDC Capital Markets were the issue and sales manager.

DB Bamjan, chairman of GDBL said, “We are overwhelmed by the response we got from the public. The record setting over subscription is a testament towards the bank’s credibility, which has enthused us to serve the best for our shareholders and customers,” he said. He also informed that the bank would now come up with an aggressive expansion plan to live up to the expectations of public.