Allotment process of Panchthar Power IPO concludes; more than 33 thousand applicants get 30 units each

Sanima Capital Limited, the issue manager of Panchthar Power Company (PPCL) IPO, has concluded the allotment process of the issue. The issue had received applications from 82,741 applicants who had applied for a total of 3,381,860 units of shares. The issue had been oversubscribed by 1.93 times till the last day of the IPO issue.

33,565 applicants who had applied for 10 units each have been fully allotted share, similarly, 11,482 applicants who had applied for 20 units each have also been fully allotted shares.

Applicants who applied for minimum 30 units to maximum 9,620 units have been allotted 20 units each on pro rata basis. The issue received applications from 37,627 applicants for this category. The remaining 335,310 units were allotted to applicants who had applied for 30 units to 9,620 units through lottery. 33,531 applicants from the mentioned category got extra 10 units each.

Applicants who applied for 20 units or less were fully allotted shares while lucky 33,531 applicants who applied for 30 units to 9,620 units were allotted 30 units each and the remaining 4,096 applicants in that category were allotted 20 units each.

The company had offered 962,500 units as IPO to the locals of Panchthar district which went undersubscribed by 787,750 units. The unsubscribed units were added to the issue for the general public. The issue for the general public received overwhelming response. Panchthar Power Company Limited had closed IPO issue of 1,750,250 units (including 787,750 units unsubscribed by locals) to the general public on Falgun 17, 2075. Out of the total issued shares 16,52,840 units were allotted to the general public, 87,512 units to the mutual fund schemes and 9,898 units to the employees of the company. 

The paid up capital of the company after the IPO will be Rs 96.25 Crore. After the issuance of IPO, the promoter shareholders will be holding 80% while the project affected locals will hold 1.82% and the ordinary shareholders will hold 18.18% stake.

Care Rating Nepal Ltd had assigned grading of CARE-NP IPO Grade 4 to the Initial Public Offer (IPO) of Panchthar Power Company Limited (PPC). ‘CARE-NP IPO Grade 4’ indicating Below Average Fundamentals.

Per megawatt cost of the project has been estimated to be Rs 17.45 crore and the total cost of the project has been estimated to be Rs 2.61 arba.

The company has already started the production of electricity through 14.9 MW Hewakhola A project. Hewa Khola Project is based in Panchthar district with a motive to generate electricity to fulfill the need of Taplejung, Panchthar, Ilam and Jhapa district.

For IPO result: CLICK HERE