Bhugol Energy Development Company Closing 13,46,993 Units IPO Shares Issue For General Public From Today
Mon, Apr 10, 2023 9:45 AM on IPO/FPO News, Latest,
Bhugol Energy Development Company is closing the issue of its Initial Public Offering (IPO) of 13,46,993 unit shares to the general public from today i.e. on 27th Chaitra, 2079. The issue opened on the 23rd of Chaitra, 2079. The company intends to collect Rs 13.46 crore from this IPO.
Earlier, the company had issued 544,053 unit shares worth Rs. 5.44 crores to the project-affected locals of Dailekh District out of which only 85,020 units were allotted to valid applicants. Thus, the remaining 459,033 units of unsubscribed shares of project-affected locals are added to 10,88,107 units (20% of the issued capital which is reserved for the general public) to make a total of 15,47,140 units for the general public.
Out of the total 15,47,140 units; 108,811 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 71,916 units have been set aside for the mutual funds, and 19,420 units have been set aside for employees of the company. The remaining 13,46,993 units are for the general public.
Overall, 70% of shares are of the promoter shareholders in the company.
According to CDSC, 948,205 applicants have applied for a total of 10,732,350 units. Thus, the issue is already oversubscribed by 7.96 times so far.
NIC Asia Capital Limited has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 30,000 units.
ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] B- (pronounced ICRA NP issuer rating B minus) to Bhugol Energy Development Company Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.
Bhugol Energy Development Company Limited was incorporated on February 16, 2009, as a private limited company, and was later converted into a public limited company on October 31, 2017, to facilitate public participation. The company operates a 3.75-MW Dwari Khola Small Hydropower Project, in Dailekh District in Karnali Province of Nepal. The project started commercial operations on May 6, 2017, against the required COD of June 30, 2017, and was developed at a total cost of ~NPR 734 million (~NPR 196 million per MW) funded in an initial debt-to-equity ratio of ~82:18.
