IPO Allotment of Samling Power Company Limited Concludes: 67,890 Applicants Celebrate, 21,20,888 Return Empty-Handed

The IPO allotment of Samling Power Company Limited has concluded today at the office of issue manager Nepal SBI Merchant Banking Limited, Hattisar.

Samling Power Company Limited had issued 7,30,000 units worth Rs 7.3 crore as Initial Public Offering to the general public from (Kartik 4-8, 2078). This is 14.6% of the company's issued capital.

Out of the offered 7,30,000 units; 2% of the total offered shares to the general public i.e. 14,600 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 36,500 units have been set aside for the mutual funds. The remaining 678,900 units are for the general public.

The issue had received applications from 21,88,778 valid applicants who had applied for a total of 2,50,96,070 units. The issue was oversubscribed by more than 36.96 times. 

As per the allotment module, a total of 67,890 applicants were allotted 10 units each via lottery, and the remaining 21,20,888 applicants returned empty hands. 

A total of 14,600 units were allotted to the staff of the company and 36,000 units were allotted to the mutual funds.

In total 9,986 applicants who applied for 1,23,830 units were disqualified.

Allotment Module

The IPO result can be accessed by iporesult.cdsc.com.np, and http://meroshare.cdsc.com.np.

ICRA Nepal has given the issuer rating of Double B Minus, denoting a moderate risk of default regarding timely servicing of financial obligations.

Samling Power Company was registered in the Office of the Company Registrar, Government of Nepal as a private company on 2070/12/23 in order to identify the feasibility, construction, and operation of hydropower projects in Nepal. This company has been operating in the name of Samling Power Company Limited by transforming into a public limited company on 2076/2/24 for the purpose of expanding public participation of the residents and general public of the project affected area.

The company has already entered into a power purchase agreement with the Nepal Electricity Authority (NEA) for the purpose of selling the electricity generated from its project.

The company has already brought in operation 9.51 MW Maibeni hydro projects in the Illam district from Aswin 1, 2078. Located in the middle reach of Mai River in the Ilam district of the eastern part of Nepal, Mai Beni Hydropower Project is a Run-of-River type hydropower project with an installed capacity of 9.51 MW.

The simple payback period of the company's project is 7.07 years and the discounted payback period is 12.24 years.