IPO Allotment of Super Madi Hydropower Limited Concludes; 1,74,300 Applicants Get 10 Units Each

The IPO allotment of Super Madi Hydropower Limited is concluded today at the premises of Sanima Capital Limited, Naxal, Kathmandu.

Super Madi Hydropower Limited had issued 17,43,000 units worth Rs 17.43 crore as Initial Public Offering to the general public (Magh 9-12, 2079). 

Out of the total 21,00,000 units; 10% i.e. 210,000 units have already been issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 42,000 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 105,000 units have been set aside for the mutual funds. The remaining 17,43,000 units are for the general public. The paid-up capital of the company will reach Rs. 2.10 Arba after the IPO issuance.

The issue had received applications from 12,98,693 valid applicants who had applied for a total of 1,44,46,560 units. The issue was oversubscribed by more than 8.33 times. 

As per the allotment module, a total of 1,74,300 applicants were allotted 10 units each via lottery, and the remaining 11,24,393 applicants were returned with empty hands. 

A total of 42,000 units were allotted to the employees and 105,000 units were allotted to the mutual funds.

In total 5,515 applicants who applied for 81,070 units were disqualified due to duplicate applications from Local Shareholders and in C-AABA, Foreign Employee Shareholders, and duplicate application from promoters and staff.

Allotment Module:

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

Earlier, the company had issued 10,50,000 unit shares worth Rs. 10.50 crores to the project-affected locals and 210,000 units shares to Nepalese citizens working abroad. Overall, 85% of shares are of the promoter shareholders in the company.

ICRA Nepal has assigned an Issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Super Madi Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Super Madi Hydroelectric Project is located in the Kaski Districts, Gandaki Zone of the Western Development Region of Nepal. The project lies in the Namarjun and Parche Village Development Committees of Kaski District. The headworks is located at the foothill of Sikles village and the powerhouse is located just opposite Sodha village. The project lies about 23 km northeast of Pokhara. At present, there is about 16km long earthen road access towards the project from Pokhara City. An earthen road track has already reached the Headrace Tunnel outlet which lies in the Namarjun Village Development Committee at the left bank of the Madi River.