Modi Energy IPO Allotment Concludes: 5,61,226 Applicants Gets 10 Units Each Whereas Staff Quota Undersubscribed
Sun, May 14, 2023 9:58 AM on IPO/FPO News, Latest,
The IPO allotment of Modi Energy Limited is concluded today at the premises of Sunrise Capital Limited, Kathmandu.
Modi Energy Limited had issued 55,59,420 units worth Rs 55.59 crores as Initial Public Offering (IPO) to the general public (Baisakh 19- 24, 2080).
Earlier, the company had issued 29,00,000 unit shares worth Rs. 29 crores to the project-affected locals of Parbat District out of which only 804,390 units or 27.73% were allotted to valid applicants. Thus, the remaining 20,95,610 units of unsubscribed shares of project-affected locals are added to 43,50,000 units (15% of the issued capital which is reserved for the general public) to make a total of 64,45,610 units for the general public.
Out of the total 64,45,610 units; 435,000 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 322,280 units have been set aside for the mutual funds, and 2% or 128,910 units have been set aside for employees of the company. The remaining 55,59,420 units are for the general public. A total of 52,840 units unsubscribed units from employees were added to the general public making a total of 56,12,260 units.
Overall, 75% of shares are of the promoter shareholders in the company.
The issue had received applications from 12,29,741 valid applicants who had applied for a total of 13,401,080 units. The issue was oversubscribed by more than 2.41 times.
As per the allotment module, a total of 5,61,226 applicants were allotted 10 units each via lottery and the remaining 6,68,515 applicants were returned with empty hands.
A total of 322,280 units were allotted to the mutual funds and out of 128,910 units set aside for employees only 76,070 were subscribed and allotted to the employees of the company and the remaining 52,840 units were added to the general public.
In total 6,528 applicants who applied for 102,950 units were disqualified.
Allotment Module:
The IPO result can be accessed by CDSC IPO Result, MeroShare, and Sunrise Capital Limited.
CARE Ratings Nepal Limited (CRNL) has revised the Issuer Rating of Modi Energy Limited to “CARE-NP D (Is)” from “CARENP BB+ (Is)”. Issuers with this rating are considered to be in default or are expected to be in default soon.
Modi Energy Limited was incorporated as Manang Trade Link Pvt Ltd on November 04, 1996. Later on, the name was changed to Modi Energy Pvt Ltd on May 28, 2017. The company got converted into a public limited on June 21, 2018. The company has been promoted by institutional promoters and individual businessmen having long experience in various sectors for setting up the Hydroelectric Project (HEP) of the 20 MW run-of-river, Tallo Modi Khola Hydropower Project (TMKHP). The project is being constructed under the “BOOT” (Build, Own, Operate, and Transfer) model and is located in the Parbat district of Nepal. It came into operation on September 30, 2021.
