Upper Syange Hydropower IPO Allotment Concludes: 11,44,127 applicants Returned Empty Hands

The IPO allotment of Upper Syange Hydropower Limited is concluded today at the premises of Siddhartha Capital Limited, Kathmandu. 

The Hydropower had issued 539,500 unit IPO shares of Rs 100 face value to the general public from 10th to 13th Ashad, 2080.

Earlier, the company had issued 2,20,000 unit shares worth Rs. 2.2 crores to the project-affected locals of Lamjung District and 65,000 unit shares to Nepalese citizens working abroad. The promoter-public share ratio will be 60.45: 39.55 after this IPO.

Out of the total 650,000 units; 10% i.e. 65,000 units have already been issued and allotted to Nepalese citizens working abroad, 5% of the total offered shares i.e. 32,500 units have been set aside for the mutual funds while 2% i.e 13,000 units have been set aside for the employees of the company. The remaining 539,500 units are for the general public. The paid-up capital of the company will reach Rs. 22 Crores after the IPO issuance.

The issue had received applications from 11,98,077 valid applicants who had applied for a total of 1,27,88,710 units. The issue was oversubscribed by more than 23.70 times. 

As per the allotment module, a total of 53,950 applicants were allotted 10 units each via lottery system and the remaining 11,44,127 applicants were returned with empty hands. 

In total 2,399 applicants who applied for 36,820 units were disqualified by CASBA members for duplicate application and for other reasons.

Allotment Module:

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

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

Upper Syange Hydropower Limited is a public company, incorporated on January 26, 2009, as Upper Syange Hydropower Private Limited and converted to Public Limited on March 30, 2017. It is promoted by both individual and institutional promoters from different backgrounds. It is setting up of a 2.4 MW Run-of-River (RoR), Upper Syange Hydropower Project (USHP) in BOOT (Build, own, Operate, and Transfer) mechanism and located at Lamjung district of Nepal.