Menchhiyam Hydropower IPO Allotment Concludes: Lucky 95,411 Applicants Gets 10 Units Each Whereas Staff Quota Undersubscribed
Wed, Apr 26, 2023 11:06 AM on IPO/FPO News, Latest,
The IPO allotment of Menchhiyam Hydropower Limited is concluded today at the Lainchaur Banquet, Kathmandu. NIC Asia Capital was the issue manager for this IPO issue.
Menchhiyam Hydropower Limited had issued 934,915 units worth Rs 9.34 crores as Initial Public Offering (IPO) to the general public (Baisakh 4- 7, 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.
Out of 22,439 units set aside for employees; only 3,240 were subscribed, and the remaining 19,199 units were added to the general public quota making a total of 954,114 units for the general public.
Overall, 70% of shares are of the promoter shareholders in the company.
The issue had received applications from 11,74,228 valid applicants who had applied for a total of 1,25,81,270 units. The issue was oversubscribed by more than 13.18 times.
As per the allotment module, a total of 95,411 applicants were allotted 10 units each via lottery, and lucky 4 applicants got 1 unit extra and the remaining 10,78,817 applicants were returned with empty hands.
A total of 56,099 units were allotted to the mutual funds and 3,240 units were allotted to the employees of the company.
In total 4,511 applicants who applied for 55,600 units were disqualified.
Allotment Module:
The IPO result can be accessed by CDSC IPO Result, MeroShare, and NIC Asia Capital Limited.
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.
