Chirkhwa Hydro Power Limited IPO Allotment Concluded; 85,930 out of 11,31,936 Valid Applicants Get 10 Units Each
Thu, Nov 2, 2023 1:41 PM on IPO/FPO News, Latest,
The IPO allotment of Chirkhwa Hydro Power Limited is concluded today at the premises of the issue manager RBB Merchant Banking Limited, Kathmandu.
Chirkhwa Hydro Power Limited issued 8,59,300 unit IPO shares at par value of Rs 100 to the general public from 23rd to 26th Ashwin, 2080.
Earlier, the company had issued 4,00,000 unit shares which were 10% of the issued capital to the project-affected locals of Bhojpur District out of which only 2,04,700 units were allotted to valid applicants. Thus, the remaining 1,95,300 units of unsubscribed shares of project-affected locals are added to 8,00,000 units (20% of the issued capital which is reserved for the general public) to make a total of 9,95,300 units for the general public.
Out of the total 9,95,300 units; 80,000 units have already been issued and allotted to Nepalese citizens working abroad, 40,000 have been set aside for mutual funds and 16,000 units have been set aside for the employees of the company. The remaining 8,59,300 units are for the general public.
The issue had received applications from 11,31,936 valid applicants who had applied for a total of 1,21,36,760 units. The issue was oversubscribed by more than 14.12 times.
As per the allotment module, a total of 85,930 applicants were allotted 10 units each via lottery and the remaining 10,46,006 applicants were returned with empty hands.
A total of 40,000 units were allotted to the mutual funds and 16,000 units were allotted to the employees of the company.
In total 2,381 applicants who applied for 32,700 units were disqualified.
Allotment Module:
The IPO result can be accessed by CDSC IPO Result, MeroShare, and RBB Merchant Banking Limited.
ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to Chirkhwa Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Chirkhwa Hydropower Limited, incorporated in January 2009, is developing a 4.7 MW Upper Chirkhwa Khola HPP in the Bhojpur district, Province-1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40% probability of exceedance. The project has been planned to be developed at a budgeted project cost of NPR 910 million (NPR ~194 million per MW) to be funded in a D: E ratio of 60:40, with the debt component of NPR 545 million secured with Rastriya Banijya Bank Limited. The project has achieved ~90-95% progress till mid-Jan 2023.
