IPO Allotment of Barahi Hydropower Public Limited Concludes; 1 in Every 23 Applicants to Be Allotted with 10 Units

The IPO allotment of Barahi Hydropower Public Limited (BHPL) is concluded today at the premises of NIBL Ace Capital Limited, Kathmandu.

Barahi Hydropower Public Limited (BHPL) had issued 5,54,000 units worth Rs 5.54 crore as Initial Public Offering to the general public (Mangsir 21 - 26, 2079). 

Out of the total 5,54,000 units; 2% of the total offered shares i.e. 11,080 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 27,700 units have been set aside for the mutual funds. The remaining 5,15,220 units are for the general public. The paid-up capital of the company will reach Rs. 25 Crores after the IPO issuance.

The issue had received applications from 11,91,284 valid applicants who had applied for a total of 13,078,100 units. The issue was oversubscribed by more than 25.35 times. 

As per the allotment module, a total of 51,522 applicants were allotted 10 units each via lottery, and the remaining 1,139,762 applicants were returned with empty hands. 

A total of 11,080 units were allotted to the employees and 27,000 units were allotted to the mutual funds.

In total 3096 applicants who applied for 28,010 units were disqualified due to duplicate applications from Local Shareholders and Promoters' Shareholders.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and NIBL Ace Capital. 

Earlier, the company had issued 250,000 unit IPO shares which is 10% of the issued capital of Rs. 25 crore to the project-affected locals of Baglung district from Kartik 04 to 25th Kartik, 2079. However, only 146,000 units or 58.4% of the total issue have been allotted to the valid applicants.

Thus, the remaining 104,000 units of unsubscribed shares are added to 450,000 units (which is 18% of shares reserved for the general public) to make a total of 5,54,000 units for the general public. Overall, 72% of shares are of the promoter shareholders in the company.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] B- (pronounced ICRA NP issuer rating B minus) to Barahi Hydropower Public Limited (BHPL/the company). Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.

Incorporated in April 2006, as a private limited company, Barahi was converted to a public limited company in March 2015, to facilitate public participation. The company is operating a 1.5-MW Theule Khola HEP, in Baglung district, Gandaki Province of Nepal since July 8, 2018; five years later than the required commercial operation date (RCOD) of May 10, 2013, at a cost of NPR 374 million funded in a debt-to-equity mix of ~52:48. The project is a run of the river (R-o-R) type and has been developed at 40% probability of exceedance (Q40).