IPO Allotment of Eastern Hydropower Limited Concludes: 62,519 Applicants Celebrate; 1,353,705 Applicants Return Empty-Handed

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

Eastern Hydropower Limited had issued 6,70,310 units worth Rs 6.70 crore as Initial Public Offering to the general public (Ashwin 28- Kartik 1, 2079). 

Out of the offered 6,70,310 units; 2% of the total offered shares i.e. 13,406 units have been set aside for the employees of the company out of which only 11,605 units were subscribed and unsubscribed 1,801 units were issued to the general public and 5% of the total offered shares i.e. 33,515 units have been set aside for the mutual funds. The remaining 6,25,190 units are for the general public.

The issue had received applications from 13,56,224 valid applicants who had applied for a total of 1,48,47,550 units. The issue was oversubscribed by more than 23.81 times. 

As per the allotment module, a total of 62,519 applicants were allotted 10 units each via lottery, and the remaining 1,353,705 applicants were returned with empty hands. 

A total of 11,605 units were allotted to 16 employees and 33,515 units were allotted to 15 mutual funds.

In total 1,996 applicants who applied for 26,490 units were disqualified due to duplicate applications.

Allotment Module:

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

Now, the paid-up capital of the company will reach to Rs. 62 Crores after the IPO issuance.

Earlier, the company had issued 6,20,000 unit IPO shares which is 10% of the issued capital of Rs 62 crore to the project-affected locals of Bhojpur District from 7th Bhadra to 28th Bhadra, 2079. However, only 569,690 units of the total issue have been allotted to the valid applicants.

Thus, the remaining 50,310 units of unsubscribed shares were added to 6,20,000 units (which is 10% of shares reserved for the general public) to make a total of 6,70,310 units for the general public. Overall, 80% of shares are of the promoter shareholders in the company.

Applications could be placed for a minimum of 10 units and a maximum of 1,00,000 units. NMB Capital Limited was appointed as the issue manager for the IPO issuance.

CARE Ratings Nepal Limited (CRNL) has revised the Issuer rating to ‘CARE-NP B+ (Is)’ to Eastern Hydropower Limited (EHL). Issuers with this rating are considered to have high risk of default regarding the timely servicing of financial obligations in Nepal.

Eastern Hydropower Limited (EHL) is a public company, incorporated on August 4, 2017, promoted by institutional as well as individual promoters from different background. It is currently operating a 5 MW Pikhuwa Khola Small Hydropower Project (PKSHP) in run –of –river scheme located at Bhojpur district, Nepal. The project has been constructed under BOOT (Build, own, Operate and Transfer) mechanism.