April 23, 2023 | Investopaper
IPO Allotment Of Dolti Power Company Limited
NIC Asia Capital Limited, the issue manager for the initial public offering (IPO) of Dolti Power Company Limited, has concluded the IPO allotment process on Friday.
After the allotment, 1,27,186 applicants have received 10 shares each. One applicant has received one additional share.
A total of 13,83,724 applicants had subscribed for the shares. Out of the total, there were 1,14,778 eligible applicants. With the allotment, more than 11.42 lakh applicants were left empty-handed after the allotment.
To view the IPO result of Dolti Power Company Limited, click the link below:
Second Phase: IPO To General Public
After issuing shares to the locals and foreign employed Nepalese in the first phase, Dolti Power 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 28, 2079 BS.
The company had floated 13,39,878 shares in the second phase of the IPO. This included 3,94,666 shares that remained unsold during the first phase. Out of the total shares, 68,017 shares are allotted to the mutual fund schemes. Hence, the general public could participate in the remaining 12,71,861 shares.
Due to over-subscription of shares, the public offering was closed on Baisakh 3, 2080 BS.
One coult apply for a minimum of 10 shares and a maximum of 10,000 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. Similarly, the IPO to the Nepalese in foreign employment was closed on Falgun 25, 2079 BS.
The company had issued 10 percent of the issued capital i.e. 5,36,486 shares to the locals of Dailekh District. Out of the total shares issued to the locals, only 1,41,820 shares were subscribed while 3,94,666 shares remained unsold.
Likewise, the company had sold 1,07,298 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
After issuing the shares to the locals and foreign employed Nepalese, the company will float 965,675 shares worth Rs 9.65 crores to the general public (excluding shares issued for foreign employed Nepalese).
Securities Board Of Nepal (SEBON) granted permission to the company on Magh 16, 2079 BS for the public issuance. The company had submitted the application to the board on Shrawan 13, 2079 BS. Only after the approval from the regulatory body, the company can sell the shares to the public.
In total (including public and locals), the hydropower will float 16,09,458 unit shares in the public offering. At a par value of Rs 100, the public issue amounts to Rs 16.09 crores.
The company appointed NIC Asia Capital Limited as issue and sales manager. The agreement for public offering had been already inked between the company and NIC Asia Capital Limited on this regard.
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 Dolti Power Company Limited
Dolti Power Company is currently operating a 4.5-MW Padam Khola Hydropower Project in Dailekh district. The project is a run-of-the-river type project. The project started commercial electricity production from December 24, 2019. The total cost of the project amounted to Rs. 1.10 Arba.
The The major promoters of the company include
Mr. Saurabh Aryal (about 14% share),
Mr. Rajendra Prasad Gautam (about 13% share),
Ms. Mira Gautam (about 12% share),
Mr. Kedarnath Poudel ( about 10% share) among others.