IPO Allotment of Sayapatri Hydropower Concludes; 1 in Every 21 Applicants to Be Allotted with 10 Units

The IPO allotment of Sayapatri Hydropower Limited (SPHL) is concluded today at the premises of NIBL Ace Capital Limited, Lazimpat, Kathmandu.

Sayapatri Hydropower Limited (SPHL) had issued 721,060 units worth Rs 7.21 crore as Initial Public Offering to the general public (Shrawan 13- Shrawan 17, 2079). 

Out of the total 721,060 units; 2% of the total offered shares i.e. 14,421 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 36,053 units have been set aside for the mutual funds. The remaining 670,586 units are for the general public. The paid-up capital of the company will reach Rs. 30 Crores after the IPO issuance.

The issue had received applications from 14,12,468 valid applicants who had applied for a total of 15,482,960 units. The issue was oversubscribed by more than 23.08 times. 

As per the allotment module, a total of 67,058 applicants were allotted 10 units each via lottery, and further 6 lucky applicants get 1 unit extra and the remaining 13,45,410 applicants were returned with empty hands. 

A total of 14,421 units were allotted to employees and 36,053 units were allotted to mutual funds.

In total 873 applicants who applied for 10,140 units were disqualified due to duplicate applications and a total of 231 applicants who applied for 2,690 units were also disqualified due to duplicate applications from Local shareholders. 

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

Earlier, the company had issued 3,00,000 unit IPO shares which are 10% of the issued capital of Rs. 3 crores to the project-affected locals of Baglung district (Galkot Municipality and Tarakhola VDC) from Ashadh 02 to Ashad 24, 2079. However, only 178,940 units or 59.64% of the total issue have been allotted to the valid applicants.

Thus, the remaining 121,060 units unsubscribed shares are added to 600,000 units (which is 20% of shares reserved for the general public) to make a total of 721,060 units for the general public. Overall, 70% shares are of the promoter shareholders in the company.

NIBL Ace Capital has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 30,000 units.

Sayapatri Hydropower Limited is a public limited company, incorporated on July 30, 2007, and promoted by institutional as well as individual promoters from different backgrounds. It is currently operating 2.5 MW Daram Khola ‘A’ hydropower project in a run –of –river scheme located in Baglung district, Nepal. The project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism. The commercial production and sale of power started on June 26, 2016.

CARE Ratings Nepal Limited (CRNL) has revised the issuer rating assigned to Sayapatri Hydropower Limited to ‘CARE-NP BB (Is) [Double B (Issuer Rating)]’ from CARE-NP B+ (Is). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations, in Nepal.