Dibyashwari Hydropower IPO oversubscribed by 23.06 times till second day; collected Rs 84.94 crore from 28,000 applicants

Dibyashwari Hydropower Company Limited has been issuing 3, 96,000 unit shares worth Rs 3.96 crore as part of its Initial Public Offering (IPO) from Ashad 13, 2073. Today is the third day of the IPO. The IPO has been oversubscribed by 23.06 times till second day. As per the official Ace Capital Limited, “The total collection of the IPO is approximately Rs 84 crore 94 lakh till second day. Around 28,000 application forms were received.” The offer will close on Ashad 16, 2073 (tomorrow). The maximum closing date for the offer is Ashad 27, 2073. Interested people must apply for a minimum of 50 units of share and they can apply for up to 1,000 unit of share. Ace Capital Limited has been assigned as the issue manager for the IPO issue. The hydropower company has set aside 2% or 7, 920 unit shares for its employees and 5% or 19,800 unit shares for the 7 mutual fund companies. The mutual fund schemes are Nabil balance fund-1, NMB Sulav Investment Fund – 1, NIBL Sambriddhi Fund – 1, Laxmi Value Fund -1, Siddhartha Equity Oriented Scheme, Siddhartha Investment Growth Scheme- 1 and Global IME samriddhi Fund-1. The company has set aside 3, 68,280 unit share to the general public. After the IPO, the paid up capital will reach Rs 26.40 crore from the current Rs 19.80crore which includes 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 distriict) - 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. Dibyashwari Hydropower has already floated 2,64,000 unit shares worth Rs 2.64 crore primary shares on Falgun 30, 2072 to the locals of Sankhuwasabha district (Dhupu, Syabun, Wana VDC and Chainpur Municipality Ward no. 8,9,11 project affected area) at the face value of Rs 100 per unit. 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.