IPO Allotment of Upper Solu Hydro Electric Company Concludes: 1,82,047 Applicants Celebrate; 12,64,938 Applicants Return Empty-Handed

The IPO allotment of Upper Solu Hydro Electric Company Limited (USHEC) is concluded today at the premises of the issue manager NMB Capital, Nagpokhari, Kathmandu.

Upper Solu Hydro Electric Company Limited (USHEC) had issued 19,57,500 units worth Rs 19.57 crore as Initial Public Offering to the general public from (Ashad 20-23, 2079). 

Out of the offered 19,57,500 units; 2% of the total offered shares to the general public i.e. 39,150 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 97,875 units have been set aside for the mutual funds. The remaining 18,20,475 units are for the general public. This is the 14.5% shares of the issued capital. 

The issue had received applications from 14,46,985 valid applicants who had applied for a total of 1,61,60,380 units. The issue was oversubscribed by more than 8.87 times. 

As per the allotment module, a total of 1,82,047 applicants were allotted 10 units each via lottery and further 5 lucky applicants get 1 unit extra and the remaining 12,64,938 applicants were returned empty hands. 

A total of 39,150 units were allotted to the staff of the company and 97,875 units were allotted to mutual funds.

In total 1,791 applicants who applied for 26,170 units were disqualified due to duplicate applications.

Allotment Module

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

The total paid-up capital post allotment of the IPO shares will be Rs 1.35 arba.

ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Upper Solu Hydro Electric Company Limited (USHEC or the company). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.

Upper Solu Hydro Electric Company Limited (USHEC) was founded on May 28, 2010 as a private limited corporation, but on April 14, 2016, it was transformed to a public limited company to allow for public participation. The company is operating a 23.5MW Solu HEP in Solukhumbu district, Province 1 of Nepal. The project is a run-of-the-river (R-o-R) design with a 40% possibility of exceeding the target (Q40). The project, which was created at a total cost of NPR 5,000 million with a debt-to-equity ratio of 75.50: 24.50, began operations on March 23, 2020. The 23.5MW Solu HEP project is one of the Super-Six projects that the Nepalese Department of Electricity Development (DoED) considered at first.