Asian Hydropower IPO Allotment To Be Concluded On Sunday; 69,720 Applicants Get 10 Units Each

The IPO allotment of Asian Hydropower Limited will take place this Sunday, i.e. on 14th Falgun, 2079. The allotment program will be held on the premises of the issue manager, NMB Capital Limited, Naxal, starting at 9 am that day.

The company issued 6,97,200 units of shares of Rs 100 face value as an Initial Public Offering worth Rs 6.97 crore to the general public from the 27th Magh till the 3rd Falgun. Out of the total 840,000 units; 10% i.e. 84,000 units have already been issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 16,800 units were set aside for the employees of the company, and 5% of the total offered shares i.e. 42,000 units were set aside for the mutual funds. The remaining 6,97,200 units were for the general public.

The company's paid-up capital will reach Rs. 34 Crores after the IPO issuance.

According to data presented by CDSC, the issue has received approx 14,92,778 applications applying for a total of 16,626,520 units of shares till the last day. Thus, the IPO was oversubscribed by 23.84 times in terms of the number of units through ordinary applicants as of the closing day.

Looking at the data, it is apparent that only 69,720 lucky applicants will get ownership of the company.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Asian Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.