IPO Allotment of Shuvam Power to be Concluded Tomorrow Morning; 48,188 Lucky Applicants will Get 10 units Each

The IPO allotment of Shuvam Power Limited (SHUVAM) will take place tomorrow morning, i.e. on 27th Magh, 2079. The allotment program will be held on the premises of the issue manager Muktinath Capital Limited, Naxal.

The company issued 481,882 units of shares of Rs 100 face value as an Initial Public Offering worth Rs 4.81 crore to the general public from the 18th Magh till the 22nd Magh. Out of the total 580,580 units; 10% i.e. 58,058 units have already been allotted to Nepalese citizens working abroad, whereas 2% i.e 11,610 units were set aside for the employees of the company and 5% of the total offered shares i.e. 29,030 units were set aside for the mutual funds. The remaining 481,882 units were for the general public.

The paid-up capital of the company will reach Rs. 20 Crores after the IPO issuance.

According to data presented by CDSC, the issue has received approx 13,64,756 applications applying for a total of 15,121,130 units of shares till the last day. Thus, the IPO was oversubscribed by 31.37 times in terms of the number of units through ordinary applicants as of the closing day.

Looking at the data, it is apparent that only 48,188 lucky applicants will get ownership of the company.

CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating assigned of ‘CARE-NP BB+ (Is)’ to Shuvam Power Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.