September 4, 2023 | Investopaper
IPO Allotment Of Bhagawati Hydropower Development Company Limited
Siddhartha Capital Limited, the issue manager for the initial public offering (IPO) of Bhagawati Hydropower Development Company Limited, has concluded the IPO allotment process on Monday.
After the allotment, 71,220 applicants have received 10 shares each.
A total of 13,06,677 valid applicants had subscribed for the shares. With the allotment, more than 12.35 lakh applicants were left empty-handed.
To view the IPO result of Bhagawati Hydropower Development Company Limited, click the link below:
Second Phase: IPO To General Public
After the first phase, Bhagawati Hydropower Development Company Limited had issued shares to the general public in the second phase of an initial public offering (IPO). The IPO to general public was open from Bhadra 5, 2080 BS.
The company had sold 7,12,220 shares at a price of Rs. 116 i.e. Rs. 16 premium over the par value of Rs. 100.
Interested investors could apply for a minimum of 10 shares and a maximum of 5,000 shares.
Due to over-subscription of shares, the public offering was closed on Bhadra 8, 2080 BS.
The company had allotted 42,905 shares to the mutual fund schemes while 17,162 shares were reserved for the employees of the company.
In the first phase, the company had issued 5,72,064 shares to the locals of the project affected areas and 85,810 shares to the foreign employed Nepalis.
In total (including the first and the second phase) , the hydropower company is planning to sell 14,30,162 shares in the IPO at a price of Rs. 116 i.e. Rs. 16 premium over the par value of Rs. 100. Thus, the public issue amounts to Rs. 16.58 crores.
For this purpose, Securities Board Of Nepal (SEBON) haf given the approval to the company on Ashad 6, 2080 BS. The company had submitted an application to the board on Mangsir 20, 2079 BS seeking permission for public issuance. Only after the approval from SEBON, the company can issue the shares to the public.
Siddhartha Capital Limited is the issue and sales manager for the IPO. The agreement for public offering was signed between the company and Siddhartha Capital in this regard on December 31, 2021.
After the IPO (if fully subscribed), the general public along with locals will possess 25 percent shares in the company while the promoters will hold the remaining 75 percent shares.
About Bhagwati Hydropower Development Limited
Bhagawati Hydropower Development Company Limited is currently operating a 4.5 MW Bijayapur-I Small Hydropower Project located at Lekhnath Municipality of Kaski district. The project is the Run-of-River type project that generates 29.33 GWh of electricity annually. The construction of the project was started on Karthik, 2067 BS. The project was completed and started electricity generation from Bhadra 05, 2069 BS.
The total cost of the project is Rs. 80 crores. Rastriya Banijya Bank, Nabil Bank & Nepal Bank provided loan financing for the project.
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