Molung Hydropower Company IPO Allotment To Be Concluded Tomorrow; 226,465 Applicants Get 10 Units Each

The IPO allotment of Molung Hydropower Company Limited will take place tomorrow, i.e. on 19th Falgun, 2079. The allotment program will be held on the premises of the issue manager, Sunrise Capital Limited, Kamalpokhari, starting at 10 am that day.

The company issued 22,64,655 units of shares of Rs 100 face value as an Initial Public Offering worth Rs 22.64 crore to the general public from the 4th Falgun till the 10th Falgun. Out of the total 27,28,500 units; 10% i.e. 272,850 units were already issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 54,570 units were set aside for the employees of the company and 5% of the total offered shares i.e. 136,425 units were set aside for the mutual funds. The remaining 22,64,655 units were for the general public. The paid-up capital of the company will reach Rs. 80.25 Crores after the IPO issuance.

According to data presented by CDSC, the issue has received approx 14,90,714 applications applying for a total of 16,623,220 units of shares till the last day. Thus, the IPO was oversubscribed by 7.34 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 226,465 lucky applicants will get ownership of the company.

ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP issuer rating double B) to Molung Hydropower Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.