IPO of Panchathar Power Company allotted to the valid applicants; 81.84% unsubscribed shares to be issued along with the issue for general public

Another day and yet another company’s issue has been unsubscribed. Panchthar Power Company Limited had issued 9,62,500 units as Initial Public Offering (IPO) for the locals of Panchthar district from Poush 30th to Magh 29, 2075. Out of the total issue only 1,74,750 units were subscribed by the valid applicants.

Now, the company will issue 17,50,250 units (including 7,87,750 units unsubscribed shares) IPO share to the general public. The paid up capital after IPO issue will be Rs 96.25 crore, whereas the promoter-public share structure will be 80-20 ratio.

The locals of Bharpa, Yangnam and Nangin rural municipality and currently Fidim Municipality, Hilifang and Falelung Municipality were able to apply in the issuance.

Applications could be placed for minimum 10 units and maximum 9,620 units.

Sanima Capital was appointed as the issue manager for the IPO issuance.

Care Rating Nepal Ltd had assigned grading of CARE-NP IPO Grade 4 to the Initial Public Offer (IPO) of Panchthar Power Company Limited (PPC). ‘CARE-NP IPO Grade 4’ indicating Below Average Fundamentals.

The per megawatt cost of the project has been estimated to be Rs 17.45 crore and the total cost of the project has been estimated to be Rs 2.61 arba.

The company has already started the production of electricity through 14.9 MW Hewakhola A project. Hewa Khola Project is based in Panchthar district with a motive to generate electricity to fulfill the need of Taplejung, Panchthar, Ilam and Jhapa district.