IPO Allotment of Balephi Hydropower Limited Concludes: 1,66,345 Applicants Celebrate; 2,001,755 Return Empty-Handed

The IPO allotment of Balephi Hydropower Limited is concluded today at the premises of the issue manager Global IME Capital, Naxal, Kathmandu.

Balephi Hydropower Limited had issued 18,27,970 units worth Rs 18.27 crore as Initial Public Offering to the general public from (Chaitra 16-21, 2078). 

18,27,970 shares will be issued at a par value of Rs. 100 per unit. 4% of the total issue, i.e. 73,119 units have been allocated for employees while 5%, i.e. 91,398 units have been allocated for mutual funds. The rest 16,63,453 shares are for the individual public.

Global IME Capital Market Limited is the issue manager for this IPO issue.

The issue had received applications from 21,68,100 valid applicants who had applied for a total of 24,358,530 units. The issue was oversubscribed more than 14.64 times. 

As per the allotment module, a total of 1,66,345 applicants were allotted 10 units each via lottery, 3 lucky applicants get 1 unit each extra and the remaining 2,001,755 applicants were returned empty hands. 

A total of 73,119 units were allotted to the staff of the company and 91,398 units were allotted to mutual funds.

In total 3,640 applicants who applied for 42,180 units were disqualified.

Allotment Module

The IPO result can be accessed by CDSC IPO Result, Global IME Capital, and MeroShare.

Incorporated on February 15, 2012, as a private limited company, Balephi Hydropower Limited (BHL) was converted into a public limited company on January 6, 2017, to facilitate public participation. BHL is developing a 36-MW Upper Balephi A hydroelectric project in Sindhupalchowk district of Province 3 of Nepal, which is around 95-98% complete as of November[1]end 2021. This run of the river (R-o-R) project is being developed at a 41.60% probability of exceedance (Q41.60). The project has been estimated to be developed at a revised budgeted cost of NPR 7,856 million (~NPR 218 million per MW) at a debt-equity ratio of 74:26. BHL has a paid-up capital of ~NPR 1,462 million, as of mid-July 2021, which is 100% held by the promoters. The major promoters of the company include Mr. Shakti Kumar Golyan (18.25%), Mr. Shulav Agrawal (18.25%), Mr. Shushil Gupta (17.50%), Mr. Shandeep Kumar Sharda (15%), Mrs. Prabha Goyanka (Bhimshariya) (9.95%) and Mr. Umesh Kasaju (8.68%). Out of the total equity requirement, the promoters have already injected their 100% capital commitment and the rest 20% of the equity, which is yet to be issued as an Initial Public Offering (IPO), has been funded through a bridge gap loan against the proposed IPO.

ICRA Rating Nepal has assigned [ICRANP-IR] IPO BB to the proposed Initial Public Offering (IPO) of Balephi Hydropower Limited indicating a moderate risk of default regarding timely servicing of financial obligations.