Dolti Power Company IPO Allotment Concludes: Lucky 1,27,186 Applicants Gets 10 Units Each

The IPO allotment of Dolti Power Company Limited is concluded today at the premises of NIC Asia Capital Limited, Kathmandu. 

Dolti Power Company Limited had issued 12,71,861 units worth Rs 12.71 crores as Initial Public Offering (IPO) to the general public (Chaitra 28, 2079- Baisakh 3, 2080). 

Earlier, the company had issued 536,486 unit shares worth Rs. 5.36 crores to the project-affected locals of Dailekh District out of which only 141,820 units were allotted to valid applicants. Thus, the remaining 394,666 units of unsubscribed shares of project-affected locals are added to 10,72,972 units (20% of the issued capital which is reserved for the general public) to make a total of 14,67,638 units for the general public.

Out of the total 14,67,638 units; 107,298 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 68,017 units have been set aside for the mutual funds, and 20,462 units have been set aside for employees of the company. The remaining 12,71,861 units are for the general public.

Overall, 70% of shares are of the promoter shareholders in the company. 

The issue had received applications from 12,68,946 valid applicants who had applied for a total of 1,35,54,130 units. The issue was oversubscribed by more than 10.66 times. 

As per the allotment module, a total of 1,27,186 applicants were allotted 10 units each via lottery, and lucky 1 applicant got 1 unit extra and the remaining  11,41,760 applicants were returned with empty hands. 

A total of 68,017 units were allotted to the mutual funds and 20,462 units were allotted to the employees of the company.

In total 1,14,778 applicants who applied for 17,13,230 units were disqualified.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and NIC Asia Capital Limited. 

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Dolti Power Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations

Dolti Power Company Limited was incorporated on April 7, 2013, as a private limited company, and was later converted into a public limited company on July 15, 2021. DPCL operates a 4.5-MW Padam Khola run-of-river (R-o-R) HPP, in the Dailekh district of Karnali province of Nepal, at a Q40 probability of exceedance and a design discharge of 2.27m3/s. The project began commercial operations on December 24, 2019, against the RCOD of February 20, 2021, and was developed at a total cost of ~NPR 1,101 million (~NPR 245 million per MW) funded in a debt-equity ratio of ~66:34.