Ingwa Hydropower Closing 12,68,639 Units IPO Shares Issue For General Public From Today
Sun, Apr 30, 2023 9:54 AM on IPO/FPO News, Latest,
Ingwa Hydropower Limited is closing the issue of 12,68,639 unit shares of Rs 100 face value from today i.e. 17th Baisakh. The issue opened on 13th Baisakh, 2080.
Earlier, the company had issued 6,00,000 unit shares worth Rs. 6 crores to the project-affected locals of Taplejung District out of which only 306,840 units were allotted to valid applicants. Thus, the remaining 293,160 units of unsubscribed shares of project-affected locals are added to 12,00,000 units (20% of the issued capital which is reserved for the general public) to make a total of 14,93,160 units for the general public.
Out of the total 14,93,160 units; 120,000 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 74,658 units have been set aside for the mutual funds, and 2% or 29,863 units have been set aside for employees of the company. The remaining 12,68,639 units are for the general public.
Overall, 70% of shares are of the promoter shareholders in the company. The company intends to collect Rs 12.68 crore from this IPO.
According to CDSC, 994,624 applicants have applied for a total of 10,964,750 units. Thus, the issue is already oversubscribed by 8.64 times so far.
Nepal SBI Merchant Banking Limited is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 20,000 units.
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Ingwa Hydropower Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.
Ingwa Hydropower Limited was incorporated on June 23, 2009, as a Private Limited company, which was later converted into a Public Limited company on August 25, 2014. The company has been promoted by institutional promoters and individual businessmen of Nepal for setting up a 9.70 MW run-of-river, Upper Ingwa Khola hydroelectric project (UIKHP) in the Panchthar district of Nepal. The project is constructed under BOOT (Build, Own, Operate, and Transfer) mechanism.
