IPO Allotment: Modi Energy Allotted Shares to Locals of Parbat District, 72.27% of Shares Were Unsubscribed

Modi Energy Limited has allotted IPO shares to the project-affected local residents of the Parbat District. The allotment program concluded on 19th Chaitra, 2079.

The company had issued 29,00,000 unit IPO shares which are 10% of the issued capital of Rs. 2.9 Arba to the project-affected locals of Parbat District from 25th Falgun to 16th Chaitra, 2079. Locals could place their applications for a minimum of 10 shares to a maximum of 1000 shares.

As per the notice published today, the company hereby informs that only 804,390 units or 27.73% of the total issue have been allotted to the valid applicants. Thus, the remaining 20,95,610 units will be soon issued to the general public along with 43,50,000 units which are 15% of the issued capital of the company.

CARE Ratings Nepal Limited (CRNL) has revised the Issuer Rating of Modi Energy Limited to “CARE-NP D (Is)” from “CARENP BB+ (Is)”. Issuers with this rating are considered to be in default or are expected to be in default soon.

Modi Energy Limited was incorporated as Manang Trade Link Pvt Ltd on November 04, 1996. Later on, the name was changed to Modi Energy Pvt Ltd on May 28, 2017. The company got converted into a public limited on June 21, 2018. The company has been promoted by institutional promoters and individual businessmen having long experience in various sectors for setting up the Hydroelectric Project (HEP) of the 20 MW run-of-river, Tallo Modi Khola Hydropower Project (TMKHP). The project is being constructed under the “BOOT” (Build, Own, Operate, and Transfer) model and is located in the Parbat district of Nepal. It came into operation on September 30, 2021.

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