Shuvam Power Closing the IPO Issue For General Public From Today
Sun, Feb 5, 2023 8:00 AM on IPO/FPO News, Latest,
Shuvam Power Limited (SHUVAM) is closing the issue of 4,81,882 unit shares of Rs 100 face value from today i.e. on 22nd Magh 2079. The company intends to collect Rs 4.81 crore from this IPO. The issue opened on 18th Magh, 2079.
Out of the total 580,580 units; 10% i.e. 58,058 units have already been issued and allotted to Nepalese citizens working abroad, whereas 2% i.e 11,610 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 29,030 units have been set aside for the mutual funds. The remaining 4,81,882 units are for the general public. The paid-up capital of the company will reach Rs. 20 Crores after the IPO issuance.
Earlier, the company had issued 2,00,000 unit IPO shares which are 10% of the issued capital of Rs. 20 crores to the project-affected locals of Sankhuwasabha district from Jestha 20, 2075 to Ashadh 24, 2075. However, only shares worth Rs 19.42 lakh or 19420 units were sold to the valid applicants. Thus, the remaining 180,580 units of unsubscribed shares are added to 400,000 units (which is 20% of shares reserved for the general public) to make a total of 580,580 units to be issued for the general public.
Muktinath 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 5,000 units. After the IPO the promoter-public share ratio will be 70: 30.
According to CDSC, 793,075 applicants have applied for a total of 89,81,740 units. Thus, the issue is already oversubscribed by 18.63 times so far.
Shuvam Power Limited is a public limited company, incorporated on December 29, 2015. SPL is involved in the operation of the 0.99MW run-of-the-river Lower Piluwa Khola Small Hydroelectric Project (LPKHP) at Sankhuwasabha District which has been in commercial operation since July 17, 2011. The company obtained the Generation License, from the Government of Nepal – Ministry of Energy on April 15, 2008.
CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating assigned of ‘CARE-NP BB+ (Is)’ to Shuvam Power Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.
