IPO Allotment Of People’s Power Limited Concluded [IPO Result !!]

August 28, 2022 | Investopaper

IPO Allotment Of People’s Power Limited

Prabhu Capital Limited, the issue manager for the initial public offering (IPO) of People’s Power Limited, has concluded the IPO allotment process on Sunday.

After the allotment, 2,29,468 applicants have received 10 shares each. Among these lucky applicants, 2 have received one additional share. A total of 15,51,416 eligble applicants had subscribed for the shares. More than 13.22 lakh applicants were left empty-handed.

To view the IPO result of People’s Power Limited, click the link below:

IPO Result Of People’s Power Limited

IPO To General Public

After selling the shares to the locals, People’s Power Limited had sold 24,67,400 shares to general public in the second phase of the Initial Public Offering (IPO). This is 39 percent of the total issue capital of the company.

The IPO to general public was open from Shrawan 31, 2079 BS. Due to over-subscription of shares, the issue was closed on Bhadra 5, 2079 BS.

Out of the total shares, 2 percent or 49,348 shares were reserved for the employees of the company. Likewise, 5 percent or 1,23,370 shares were allotted to the mutual fund schemes. Therefore, the general public can participate in the remaining 22,94,682 shares.

One could apply for the minimum of 10 shares and a maximum of 50,000 shares.

IPO To Locals

In the first phase of the IPO, the hydropower floated 6,32,600 shares to the locals of the project-affected areas from Ashad 8, 2079 BS. This is 10 percent of the total issued capital (Rs. 63.26 crores).

The IPO to locals was closed on Shrawan 5, 2079 BS. Previously, the IPO was set to close on Ashad 22, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended.

Locals of Ward Number 1 & 4 (Most affected areas) of Illam Municipality can apply for 30 percent or 1,89,780 shares. Likewise, residents of other wards of Illam Municipality can apply for the 70 percent or 4,42,820 shares.

In total (including locals and general public), the company will sell 31,00,000 shares in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 31 crores.

Securities Board of Nepal (SEBON) has granted permission to the company on Jestha 27, 2079 BS for the public issuance. The company had submitted the application to the board on Poush 27, 2078 BS.

After the issue of IPO, the general public (along with locals) will own 49 percent shares in the company. Likewise, the promoters will hold 51 percent ownership.

Prabhu Capital Limited is the issue and sales manager. An agreement was reached between the hydropower company and Prabhu Capital in this regard. The agreement was signed by Santosh Raj Nepal, director on behalf of People’s Power Limited and Dinesh Thakali, managing director on behalf of Prabhu Capital Limited.

People’s Power Limited is constructing a 4.96 MW project at Puwakhola in Ilam Municipality of Illam District. The company has informed that the physical progress of the project has been 80 percent completed.

Suggested Readings:

Upcoming IPO In Nepal

List Of Hydropower Projects In Nepal (Developed By Private Sector)

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