IPO Issue of Upper Lohore Hydropower Company Closing Today; Oversubscribed 6.13 Times So Far
Mon, Aug 7, 2023 7:42 AM on IPO/FPO News, Latest,
Upper Lohore Hydropower Company Limited is closing the issue of its 19,53,279 unit IPO shares of Rs 100 face value from today i.e. on 22nd Shrawan, 2080. The issue opened on 18th Shrawan, 2080.
Earlier, the company had issued 509,804 unit shares worth Rs. 5.09 crores to the project-affected locals of Dailekh District out of which only 206,760 units or 40.55% were allotted to valid applicants. Thus, the remaining 303,044 units of unsubscribed shares of project-affected locals are added to 19,88,236 units (39% of the issued capital which is reserved for the general public) to make a total of 22,91,280 units for the general public.
Out of the total 22,91,280 units; 10% i.e. 198,824 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 99,412 units have been set aside for the mutual funds while 2% i.e 39,765 units have been set aside for the employees of the company. The remaining 19,53,279 units are for the general public. The paid-up capital of the company will reach Rs. 50.98 Crores after the IPO issuance.
Overall, 51% of shares are of the promoter shareholders in the company. The company intends to collect Rs 19.53 crore from this IPO.
NIC Asia Capital Limited is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 25,000 units.
According to CDSC, 10,50,196 applicants have applied for a total of 11,965,120 units. Thus, the issue is already oversubscribed by 6.13 times so far.
CRNL has assigned a ‘CARE-NP BB- (Is)’ rating to Upper Lohore Khola Hydropower Company Limited (ULKH). Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.
Upper Lohore Hydropower Company Limited was established on November 10, 2017, as a private limited company. Later, the company was converted into a public limited company. The company is developing an Upper Lohare Hydropower Project in the Dailekh district. The project is a run-of-the-river type project with an installed capacity of 4MW.
