Menchhiyam Hydropower IPO Collects Rs. 92.58 Crores Till Third Day; Oversubscribed 9.90 Times from 831,961 Applicants

CDS & Clearing Limited (CDSC) has reported the data of public IPO collection of Menchhiyam Hydropower Limited as of 10 am today i.e Baisakh 06.

The company has been issuing 934,915 unit shares of Rs 100 face value as Initial Public Offering to the general public from 4th Baisakh, 2080. The early closing date of this issue is on the 7th Baisakh and if the issue is not fully subscribed, it can be extended up to the 19th Baisakh, 2080.

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.

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.

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.

According to CDSC, 831,961 applicants have applied for a total of 92,58,150 units. Thus, the issue is already oversubscribed by 9.90 times so far.

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