Makar Jitumaya Suri Hydropower Company IPO Allotment To Be Concluded On Wednesday; 133,730 Applicants Get 10 Units Each

The IPO allotment of Makar Jitumaya Suri Hydropower Company Limited will take place this Wednesday, i.e. on 29th Chaitra, 2079. The allotment program will be held on the premises of the issue manager, Prabhu Capital Limited, Kamaladi.

The company issued 13,37,302 units of shares of Rs 100 face value as an Initial Public Offering worth Rs 13.37 crore to the general public from the 19th Chaitra till the 25th Chaitra. Out of the total 15,20,000 units i.e. 20% of the issued capital; 10% or 152,000 units have already been issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 32,028 units were set aside for the employees of the company and 5% of the total offered shares i.e. 80,070 units were set aside for the mutual funds.

Earlier, the company had issued 760,000 unit shares worth Rs. 7.6 crores to the project-affected locals of Dolakha District out of which only 6,78,600 units were allotted to valid applicants. Thus, the remaining 81,400 units of unsubscribed shares of project-affected locals were added to 12,55,902 units (which is reserved for the general public) to make a total of 13,37,302 units for the general public.

According to data presented by CDSC, the issue has received approx 13,28,266 applications applying for a total of 1,47,59,850 units of shares till the last day. Thus, the IPO was oversubscribed by 11.03 times in terms of the number of units through ordinary applicants as of the closing day.

Looking at the data, it is apparent that only 133,730 lucky applicants will get ownership of the company.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Makar Jitumaya Suri Hydropower Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations, in Nepal