Shuvam Power IPO Allotment Concludes; Lucky 48,188 Applicants Got 10 Units Each Via Lottery System

The IPO allotment of Shuvam Power Limited (SHUVAM) is concluded today at the premises of Muktinath Capital Limited, Kathmandu.

Shuvam Power Limited (SHUVAM) had issued 4,81,882 units worth Rs 4.81 crore as Initial Public Offering (IPO) to the general public (Magh 18-22, 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. The company intends to collect Rs 4.81 crore from this IPO.

The issue had received applications from 12,75,421 valid applicants who had applied for a total of 1,38,47,570 units. The issue was oversubscribed by more than 28.74 times. 

As per the allotment module, a total of 48,188 applicants were allotted 10 units each via lottery and an additional 1 unit extra allotted to 2 applicants, and the remaining 12,27,233 applicants were returned with empty hands. 

A total of 11,610 units were allotted to the employees and 29,030 units were allotted to the mutual funds.

In total 3587 applicants who applied for 47,200 units were disqualified due to duplicate applications from Local Shareholders, Foreign Employee Shareholders, Staff, and C-ASBA Suspect.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and Muktinath Capital Limited. 

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 were issued for the general public.

After the IPO the promoter-public share ratio will be 70: 30 and the total capital of the company will increase to Rs 20 crore.

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.