Upper Lohore Hydropower Company IPO Allotment Concludes: Lucky 1,95,327 Applicants Allotted 10 Units Each via Lottery System

The IPO allotment of Upper Lohore Hydropower Company Limited is concluded today at Kaji Kitchen, Battisputali, Kathmandu. NICA Asia Capital is appointed as an issue manager for this IPO issue.

Upper Lohore Hydropower Company Limited issued 19,53,279 unit IPO shares of Rs 100 face value to the general public from 18th to 22nd Shrawan, 2080.

Earlier, the company had issued 509,804 unit shares worth Rs. 5.09 crores to the project-affected locals of Dailekh District out of which only 206,760 units or 40.55% were allotted to valid applicants. Thus, the remaining 303,044 units of unsubscribed shares of project-affected locals are added to 19,88,236 units (39% of the issued capital which is reserved for the general public) to make a total of 22,91,280 units for the general public.

Out of the total 22,91,280 units; 10% i.e. 198,824 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 99,412 units have been set aside for the mutual funds while 2% i.e 39,765 units have been set aside for the employees of the company. The remaining 19,53,279 units are for the general public. The paid-up capital of the company will reach Rs. 50.98 Crores after the IPO issuance.

The issue had received applications from 12,83,596 valid applicants who had applied for a total of 1,41,17,850 units. The issue was oversubscribed by more than 7.23 times. 

As per the allotment module, a total of 1,95,327 applicants were allotted 10 units each via lottery system and 9 lucky applicants were allotted 1 unit extra and the remaining 10,88,269 applicants were returned with empty hands. 

In total 5,689 applicants who applied for 82,040 units were disqualified.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and NIC Asia Capital.

CRNL has assigned a ‘CARE-NP BB- (Is)’ rating to Upper Lohore Khola Hydropower Company Limited (ULKH). Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

Upper Lohore Hydropower Company Limited was established on November 10, 2017, as a private limited company. Later, the company was converted into a public limited company. The company is developing an Upper Lohare Hydropower Project in the Dailekh district. The project is a run-of-the-river type project with an installed capacity of 4MW.