Menchhiyam Hydropower Closing 934,915 Units IPO Shares Issue For General Public From Today
Thu, Apr 20, 2023 5:20 AM on IPO/FPO News, Latest,
Menchhiyam Hydropower Limited is closing the issue of 934,915 unit shares of Rs 100 face value from today i.e. on 7th Baisakh, 2080. The issue opened on 4th Baisakh, 2080.
Earlier, the company had issued 542,583 unit shares worth Rs. 5.42 crores to the project-affected locals of Sankhuwasabha District out of which only 505,780 units were allotted to valid applicants. Thus, the remaining 36,803 units of unsubscribed shares of project-affected locals are added to 10,85,167 units (20% of the issued capital which is reserved for the general public) to make a total of 11,21,970 units for the general public.
Out of the total 11,21,970 units; 108,517 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 56,099 units have been set aside for the mutual funds, and 2% or 22,439 units have been set aside for employees of the company. The remaining 934,915 units are for the general public.
Overall, 70% of shares are of the promoter shareholders in the company. The company intends to collect Rs 9.34 crore from this IPO.
According to CDSC, 959,089 applicants have applied for a total of 10,628,250 units. Thus, the issue is already oversubscribed by 11.36 times so far.
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 10,000 units.
CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB (Is)’ assigned to Menchhiyam Hydropower Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal
Menchhiyam Hydropower Limited is a public limited company, incorporated on November 08, 2017, as a Private Limited company, which was then converted into a public company on July 15, 2021. The company is involved in setting up of a 4.72 MW run-of-river, Upper Piluwa Khola-II Small Hydropower Project (UPKHP) in the Sankhuwasabha district of Nepal by utilizing the available head and flow from Piluwa Khola (river). The project is constructed under BOOT (Build, own, Operate, and Transfer) mechanism.
