IPO Allotment of Rapti Hydro and General Construction Concludes: 2,17,694 Applicants Celebrate; 12,72,604 Applicants Return Empty-Handed

The IPO allotment of Rapti Hydro and General Construction Limited (RHGCL) is concluded today at the premises of Siddhartha Capital Limited, Naxal, Kathmandu.

Rapti Hydro and General Construction Limited (RHGCL) had issued 23,66,240 units worth Rs 23.66 crore as Initial Public Offering to the general public from (Ashad 29- Shrawan 1, 2079). 

Out of the total 23,66,240 units; 3% of the total offered shares i.e. 70,988 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 1,18,312 units have been set aside for the mutual funds. The remaining 21,76,940 units are for the general public. The paid-up capital of the company will reach to Rs. 61.27 Crores after the IPO issuance.

The issue had received applications from 14,90,298 valid applicants who had applied for a total of 1,62,59,240 units. The issue was oversubscribed by more than 7.46 times. 

As per the allotment module, a total of 2,17,694 applicants were allotted 10 units each via lottery, and the remaining 12,72,604 applicants were returned empty hands. 

A total of 70,988 units were allotted to the staff of the company and 1,18,312 units were allotted to mutual funds.

In total 1,424 applicants who applied for 17,370 units were disqualified.

Allotment Module

The IPO result can be accessed by CDSC IPO Result, Siddhartha Capital, MeroShare and Muktinath Capital.

Earlier, the company had issued 6,12,793 unit IPO shares which are 10% of the issued capital of Rs 6.12 crore to the project-affected locals of Rukum (Eastern and Western districts) from 24th Jestha to Ashad 10, 2079. However, only 5,75,170 units, or 93.86% of the total issue have been allotted to the valid applicants.

Thus, the remaining 37,623 units unsubscribed shares are added to 23,28,617 units (which is 38% of shares reserved for the general public) to make a total of 23,66,240 units for the general public. Overall, 52% of shares are of the promoter shareholders in the company.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) to Rapti Hydro and General Construction Limited (RHGCL). Companies with this grading are considered to have high risk of default regarding timely servicing of financial obligations.

Rapti Hydro & General Construction Limited is a public company incorporated on Kartik 5, 2065 (October 21, 2008) as per Companies Acts 2063, Nepal with the objective to develop and invest in hydropower projects. It is currently developing a 5 MW Rukum Gad Hydropower Project in Rukum East District and owns its Electricity generation license. The Project is located at Sisne and Bhume Gaunpalika of Rukum East District. Its registered office is located at Kathmandu-11, Bluestar Complex, Tripureshor.