IPO Allotment of Asian Hydropower Limited Concludes; 69,720 Applicants Out of 14,25,720 Applicants Get 10 Units Each

The IPO allotment of Asian Hydropower Limited is concluded today at the premises of NMB Capital Limited, Naxal, Kathmandu.

Asian Hydropower Limited had issued 6,97,200 units worth Rs 6.97 crore as Initial Public Offering (IPO) to the general public (Magh 27- Falgun 2, 2079). 

Out of the total 840,000 units; 10% i.e. 84,000 units have already been issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 16,800 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 42,000 units have been set aside for the mutual funds. The remaining 6,97,200 units are for the general public.

The paid-up capital of the company will reach Rs. 34 Crores after the IPO issuance.

The issue had received applications from 14,25,720 valid applicants who had applied for a total of 1,54,45,820 units. The issue was oversubscribed by more than 22.15 times. 

As per the allotment module, a total of 69,720 applicants were allotted 10 units each via lottery and the remaining 13,56,000 applicants were returned with empty hands. 

A total of 16,800 units were allotted to 11 employees and 42,000 units were allotted to the 15 mutual funds.

In total 6,502 applicants who applied for 79,580 units were disqualified due to duplicate applications from Local Shareholders, Foreign Employee Shareholders, Promoter Shareholders, and C-ASBA.

Allotment Module:

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

Earlier, the company had issued 3,40,000 unit shares worth Rs. 3.4 crores to the project-affected locals and 84,000 units shares to Nepalese citizens working abroad. Overall, 65.29% of shares are of the promoter shareholders in the company.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Asian Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

Asian Hydropower Ltd. was incorporated as a private limited company on May 05, 2016, and later on, July 10, 2019, converted into a public limited company. It is promoted by individual promoters from different backgrounds and institutional investors for setting up a 6.2 MW run-of-river, Lower Jogmai Hydropower Project (LJHP) in the “BOOT” (Build, Own, Operate, and Transfer) model and is located at Illam district of Nepal. The project started commercial operations on November 01, 2021. The power project utilizes available heads and flows from Jogmai Khola (river). The project has a 132.2 km2 catchment area and 5.70m3/s design discharge at 40% exceedance flow.