Dibyashwari Hydropower IPO allotment tomorrow; likely to get flat 1.1%; lottery up to Rs 87,000

Dibyashwari Hydropower Company Limited had issued 3, 96,000 unit shares worth Rs 3.96 crore as part of its Initial Public Offering (IPO) from Ashad 13, 2073 till Ashad 16, 2073. The IPO was oversubscribed by 78.53 times till last day. As per the official of Ace Capital Limited “The allotment of the IPO will be tomorrow (Bhadra 8, 2073) at 1:00 PM.” Ace Capital Limited has been assigned as the issue manager for the IPO issue. As per the preliminary data, the investors are likely to be allotted 1.1% flat and lottery  will be up to Rs 87,000 or 870 units .  However, percentage may change with the final output of the allotment data. After the IPO, the paid up capital will reach Rs 26.40 crore from the current Rs 19.80crore which includes Rs 2.64 crore collected from the project-affected area. The hydropower has authorized capital of Rs 56 crore. After the IPO, the promoter-people of affected area (Sankhuwasabha district) – public ratio of the company will be 75% to 10% to 15%. ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below average fundamentals to the proposed IPO of Dibyashwari Hydropower. The Hydropower project is situated at Dhupu VDC in Sankhuwasabha. The Hydropower project has the capacity of generating 4 MW electricity. From the beginning of next fiscal year the hydropower project will start generating revenue.