IPO Allotment of Bhugol Energy Development Concludes; 1,34,699 Applicants Get 10 Units Each, Lucky 3 Applicants Get 1 Unit Extra
Sun, Apr 16, 2023 5:48 PM on IPO/FPO News, Latest,
The IPO allotment of Bhugol Energy Development Company is concluded today at the premises of NIC Asia Capital Limited, Kathmandu.
Bhugol Energy Development Company had issued 13,46,993 units worth Rs 13.46 crores as Initial Public Offering (IPO) to the general public (Chaitra 23- 27, 2079).
Earlier, the company had issued 544,053 unit shares worth Rs. 5.44 crores to the project-affected locals of Dailekh District out of which only 85,020 units were allotted to valid applicants. Thus, the remaining 459,033 units of unsubscribed shares of project-affected locals are added to 10,88,107 units (20% of the issued capital which is reserved for the general public) to make a total of 15,47,140 units for the general public.
Out of the total 15,47,140 units; 108,811 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 71,916 units have been set aside for the mutual funds, and 19,420 units have been set aside for employees of the company. The remaining 13,46,993 units are for the general public.
Overall, 70% of shares are of the promoter shareholders in the company.
The issue had received applications from 11,49,151 valid applicants who had applied for a total of 1,23,64,840 units. The issue was oversubscribed by more than 9.18 times.
As per the allotment module, a total of 1,34,699 applicants were allotted 10 units each via lottery, and lucky 3 applicants got 1 unit extra and the remaining 10,14,452 applicants were returned with empty hands.
A total of 71,916 units were allotted to the mutual funds and 19,420 units were allotted to the employees of the company.
In total 1,04,855 applicants who applied for 16,65,890 units were disqualified.
Allotment Module:
The IPO result can be accessed by CDSC IPO Result, MeroShare, and NIC Asia Capital Limited.
ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] B- (pronounced ICRA NP issuer rating B minus) to Bhugol Energy Development Company Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.
Bhugol Energy Development Company Limited was incorporated on February 16, 2009, as a private limited company, and was later converted into a public limited company on October 31, 2017, to facilitate public participation. The company operates a 3.75-MW Dwari Khola Small Hydropower Project, in Dailekh District in Karnali Province of Nepal. The project started commercial operations on May 6, 2017, against the required COD of June 30, 2017, and was developed at a total cost of ~NPR 734 million (~NPR 196 million per MW) funded in an initial debt-to-equity ratio of ~82:18.
