IPO Allotment Of Bhugol Energy Development Company Concluded [IPO Result]
April 17, 2023 | Investopaper
IPO Allotment Of Bhugol Energy Development Company Limited
NIC Asia Capital Limited, the issue manager for the initial public offering (IPO) of Bhugol Energy Development Company Limited, has concluded the IPO allotment process on Sunday.
After the allotment, 1,34,699 applicants have received 10 shares each. 3 applicants have received one additional share.
A total of 12,54,006 applicants had subscribed for the shares. Out of the total, there were 11,49,151 eligible applicants. With the allotment, more than 11.2 lakh applicants were left empty-handed after the allotment.
To view the IPO result of Bhugol Energy Development Company Limited, click the link below:
IPO Result Of Bhugol Energy Development Company Limited
Second Phase: IPO To General Public
After issuing shares to the locals and foreign employed Nepalese in the first phase, Bhugol Energy Development Company Limited had sold shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public was open from Chaitra 23, 2079 BS.
The company had floated 14,38,329 shares in the second phase of the IPO (includes 4,59,033 shares that remained unsold in the first phase of IPO). Out of the total shares, 79,916 shares are allotted to the mutual fund schemes while 11,420 shares are reserved for the employees of the company. Hence, the general public could participate in the remaining 13,46,993 shares.
Due to over-subscription of shares, the public offering was closed on Chaitra 27, 2079 BS.
One could apply for a minimum of 10 shares and a maximum of 30,000 shares.
First Phase: IPO To Locals & Foreign-Employed Nepalese
In the first phase of the IPO, the company had sold shares to the locals of the project affected areas and to the Nepalese in Foreign Employment from Falgun 8, 2079 BS.
The IPO to locals was closed on Chaitra 7, 2079 BS. Likewise, the IPO to the Nepalese in foreign employment was closed on Falgun 25, 2079 BS.
The company had floated 10 percent of the issued capital i.e. 5,44,053 shares to the locals of Dailekh District.
Similarly, the company had sold 1,08,811 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
Securities Board Of Nepal (SEBON) granted permission to the company on Magh 16, 2079 BS. The company had submitted the application to the board on Chaitra 2, 2078 BS seeking permission to float the shares. Only after receiving the approval from the regulatory body, the company can float the shares to the public.
In total (including public and locals), the company sold 16,32,160 shares in the IPO. At a par value of Rs. 100, the public issue amounts to Rs. 16.32 crores.
NIC Asia Capital Limited is the issue and sales manager for the IPO.
After the IPO (if fully subscribed), the general public along with locals will possess 30 percent share in the company while the promoters will hold the remaining 70 percent shares.
About Bhugol Energy Development Company Limited
Bhugol Energy Development Company was established on February 16, 2009. Later on October 31, 2017, the company was transformed into a public limited company.
The company is currently operating a 3.75 MW Dwari Khola Small Hydropower Project located at Dailekh District in Karnali. It is a run-of-the-river type project. The project started commercial operation from May 6, 2017 [Baisakh 23, 2074 BS].
Dwari Khola Small Hydropower Project was developed at a cost of Rs. 19.6 crores per MW.
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