IPO allotment of United IDI-Mardi and R.B. Hydropower concludes; lucky 81,273 investors get 10 units each and remaining 4,59,129 applicants return empty hand

The IPO allotment of United IDI-Mardi and R.B. Hydropower Limited is allotted today (Mangsir 14) at the premises of Global IME Capital Limited.

United IDI-Mardi and R.B. Hydropower Limited has issued 8,73,910 units (including 2,43,910 units unsubscribed by locals) worth Rs 8.73 crore as Initial Public Offering to the general public from (Mangsir 3-7, 2077).

Out of the offered 8,73,910 units; 17,478 units have been set aside for the employees of the company and 43,696 units have been set aside for the mutual funds. The remaining 8,12,736 units are for the general public.

The issue had received applications from 5,40,402 valid applicants who had applied for a total of 94,83,840 units. The issue was oversubscribed by 11.67 times. In total 861 invalid applicants applied for 14,560 units. 

As per the allotment module, a total of 81,273 applicants were allotted 10 units each via lottery whereas 6 lucky applicants get 1 unit extra and the remaining 4,59,129 applicants were returned empty hands. 

A total of 17,478 units were allotted to the staff of the company and 43,696 units allotted to mutual funds.

The IPO result can be accessed by sharesansar.com- IPO result page.

The Managing Director of the company thanked everyone who made the IPO issue possible. Furthermore, he added that the investment made by the investors is safe, given that the company is almost ready for revenue generation.

Allotment Module:

After the issuance of 8,73,910 units worth Rs 8.73 crore IPO shares the general public i.e 20.78 % of total capital which will together raise its paid-up capital to Rs 42 crore and the promoter/public ratio will be 75:25. 

Care Ratings Nepal Limited has assigned the "CARE-NP BB+ (Is)‟ rating to United Mardi and RB Hydropower Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations, in Nepal.

The project is promoted by individual promoters from different background along with two institutional promoters for setting up of a 7MW run-of-river, Upper Mardi Khola Hydropower Project in the Kaski district of Nepal. This project is constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism. After the issue of the proposed IPO of Rs.105 Million, the promoters and public holding ratio is expected to be in the ratio of 75:25.